32329 - IFC/SG MRT Trade

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Environmental & Social Review Summary

Project Number

32329

Company Name

BB ENERGY (GULF) DMCC

Date ESRS Disclosed

Jun 20, 2012

Country

Mauritania

Region

Africa

Last Updated Date

Dec 1, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jul 26, 2012
Signed : Dec 3, 2012
Invested : Dec 21, 2012

Sector

Other Petroleum and Coal Products

Industry

Manufacturing

Department

Gbl Ind, Manufact, Agribus & Services

Project Description

BB Energy, an international trading company with main trading centers in Dubai and London, has been awarded a 2-year contract to supply refined oil products in Mauritania. The proposed financing consists of a short term trade facility, set up together with Société Générale, DFIs and other commercial lenders, to finance BB Energy’s importation of refined energy products into Mauritania. The funding will be used by BB Energy to purchase various liquid fuels from world markets and store the fuels at two fuels storage terminals located in Nouakchott and Nouadhibou, Mauritania, respectively.

Both terminals are owned by Government of Mauritania and managed by professional management companies. The Nouakchott terminal is managed by Mauritanienne d’Entreposage des Produits Pétroliers (MEPP) and the Noudhibou terminal is managed by Société de Gestion des Installations Pétrolières (GIP), which is mainly owned by Société Nationale Industrielle et Minière (SNIM), the largest state owned company in Mauritania. SNIM has obtained ISO 14000 for its operations in mining operations.

Overview of IFC's Scope of Review

The review of this financing consisted of appraising technical, environmental, occupational health and safety, and social information submitted by BB Energy (Gulf) DMCC (the “Sponsor”) and an independent consultant. The environmental and social (E&S) team reviewed the Sponsor’s environmental and engineering management plans and desk review of corporate E&S risk assessment provided by independent consultants. The E&S team met the Sponsor’s management representatives and fuel storage terminal management team and visited the fuel storage terminal and jetty in Nouakchott, Mauritania in May 2011.

E & S Project Categorization and Applicable Standard

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
This financing is for fuel import. The two fuel terminals are located in the coastal desert area. There is no residential community near the terminals. There are no fishing areas near either jetty area. No land will be acquired for this project. The renovation of Nouadhibou terminal will be at its current location. Both terminals are located within port industry areas, which were established more than 10 years ago. There are no areas of biodiversity value adjacent to the area. Indigenous Peoples and items of Cultural Heritage have not been identified in the project area.

BB Energy’s main business is refined energy products trading. BB Energy will mainly purchase liquid fuel from international spot markets for this project. Both fuel storage terminals are located at port industrial areas and built a few kilometers from the shore. The tank farms have sufficient secondary containment systems. The fuel tanks are installed with floating roofs to prevent vapor emissions. Both terminals have established EHS procedures for operations. The potential adverse E&S impacts of this project are therefore few in number and limited to project sites, and may be readily mitigated. This is therefore an E&S Category B project in accordance with IFC’s Policy on Environmental and Social Sustainability.

Environmental and Social Mitigation Measures

Coastal Environment Protection: Both fuel storage terminals are located more than one kilometer from the coast. The secondary containment walls are in good condition. The coastal environment will not be impacted in case of any catastrophes, such as structural failure or earthquake. The loading jetty in Nouakchott was put into operation in April 2012 and the safety design meets current international norms in respect to emergency shutdown, firefighting, and spill prevention features. The jetty in Nouadhibou will be renovated according to API or EU standards in late 2012 or early 2013.

The oil tankers are required to comply with all applicable environmental standards of International Maritime Organization (IMO). The characteristics of the oil tankers must be certified to the standards by an independent control specialist in the field and approved by the manager of the terminals. Besides the certification, the oil tankers must be less than 20-year old. There are also routine inspections for spill/fire prevention at each jetty during unloading periods, including pipe connections, water pump readiness, fire source inspection, etc.

Emissions to Air: There are floating roofs for all gasoline and kerosene tanks at both terminals to prevent emissions to air of volatile organic compounds (VOCs). There is no other significant air emission source at either terminal. Currently, all the gasoline and kerosene tanks are installed with floating roofs to prevent VOCs emissions.

Fuel Storage: The Nouakchott terminal was built in 2005 based on EU standards for most of the safety features. MEPP contracted third party to clean the tanks and inspect the tank integrity periodically. The last tank cleaning was conducted in 2008 and the last integrity inspection was conducted in early 2012.

The Nouadhibou terminal was built in 1977 with 268,000 m3 storage capacity. GIP also routinely cleans the tanks and inspects the tank integrity. The last integrity inspection was conducted in early 2008. GIP will only use storage tank that have passed structural integrity inspection. Currently, GIP only uses 225,000 m3 storage capacity, which are considered safe based on inspection.

SNIM will renovate and expand the Nouadhibou fuel storage terminal and the jetty according to API or EU standards. The World Bank partially financed the feasibility study and the preparation of the technical specifications for the tender documents. The renovation and expansion project is expected to start in late 2012 or early 2013.

Greenhouse gases (GHG): There is no manufacturing process in this trading deal. The two terminals indirectly generate GHG through electricity consumption. The terminals generate less than 10,000 ton CO2 equivalent GHG per year.

Stakeholder Engagement

BB Energy will disclose this document in local prevailing language (French) at Commission National de Hydrocarbures, located at Lot No. 36, BP.5137, Nouakchott, Mauritania.

Please contact the following for inquiries or concerns about the environmental and social impacts of this project:

Tawfiq Trading Group S.A.L
Immeuble Mauricenter 1st Floor,
B3 Tevragh Zeina – No. 711
Nouakchott, Mauritania

Broad Community Support

Environmental & Social Action Plan

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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