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 IFC's 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
PS 4 – Community Health, Safety and Security
PS 5 – Land Acquisition and Involuntary Resettlement
PS 6 – Biodiversity Conservation and Sustainable Management of Living Natural Resources

While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with PS1, PS2, PS3, PS4, PS5 and PS6. With regards to PS7 – Indigenous Peoples (IP), this Performance Standard is not applicable as the Project will not have adverse impacts on indigenous or Afro-Colombian peoples’ traditional or customary lands. With regards to PS8 - Cultural Heritage, this Performance Standard is not applicable as the ESIA and complementary studies conducted by specialist did not identify significant cultural heritage within the project footprint.

This is a Category B project according to IFC’s Environmental & Social Review Procedure as the proposed expansion of the existing Terminal’s footprint has limited E&S impacts on environmental and social receptors beyond those associated with the existing investment. No physical resettlement will take place or impacts on Indigenous Peoples are expected. The Project could potentially involve environmental and social impacts related to: incremental impacts on neighboring communities due to construction noise, traffic and vibration from the combined operations of Phase I and II; removal of approximately 0.8 hectares of mangroves to allow for Project activities; short term impacts on water quality related to dredging operations and dredge spoil disposal and; potential additional economic displacement of a number of artisanal fishermen.

Key environmental and social issues relating to the Project are summarized below, along with specific information on how potential impacts will be addressed by the Company. Upon implementation of the necessary mitigation measures described below and in the attached Environmental and Social Action Plan (ESAP), the Project will comply with environmental and social requirements, namely IFC’s Performance Standards on Social and Environmental Sustainability and Access to Information Policy, and applicable World Bank/IFC environment, health and safety (EHS) guidelines.

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.

Environmental and Social Management System: TCBuen has developed an Environmental, Health & Safety and Quality (EHSQ) overarching Policy based on EIA requirements, ISO14001 and Colombian health and safety requirements. The Policy details a commitment to providing a safe work environment; promoting sustainable development; assessing potential impacts; and implementing measures aimed to prevent, mitigate and compensate for impacts. As part of ongoing work, TCBuen has also implemented, and obtained certification, for a Quality Management System (QMS) based on ISO9001.



For Phase II activities, the construction contractor has not yet been selected. However, as part of the Company’s policies, the selected contractor will put in place a corporate ESHS Management System based on ISO14001 and Colombian health and safety requirements for the execution of its work. This will include the necessary ESHS management plans and procedures based on ESIA requirements and good international industry practice (GIIP). Similarly, the selected dredging contractor (Jan de Nul Group) will follow its corporate ESHS policies and procedures for the execution of its work, including a project-specific Dredging and Dredge Disposal EHS Management Plan and Contingency Plan.



As part of IFC’s involvement, the Company is updating its corporate Policy to include a social component as well as its commitment to comply with international standards, specifically IFC’s Performance Standards. The Company will also improve its existing Management System to make it an integrated ESHS Management System based on ISO9001, ISO14001 and OSHAS18001. This will include the necessary elements and programs to align the System with GIIP.



Environmental and Social Assessment: The Colombian Ministry of the Environment and Sustainability (MADS) awarded TCBuen the initial Environmental License (through Resolution 705/2006) for the terminal project in 2006. Subsequently, TCBuen applied for, and the Ministry of the Environment awarded, four Modifications to this License. Thus, TCBuen currently operates under the initial Resolution (705/2006) and its four Modifications: Resolution 0862/2008, Resolution 2051/2008, Resolution 2280/2010 and Resolution 0375/2013. The initial ESIA was prepared by Hidrocariba S.A. with subsequent Modifications prepared by Corporación BioParque.



The ESIA submitted by TCBuen in November 2012 for obtaining the Environmental License Modification for Phase II included environmental baselines, a project description, an environmental and social impact assessment, and an environmental management plan. The Environmental License granted on April 25, 2013 (No. 0375/2013) allows for the expansion of the port terminal and includes, among other requirements, the need to provide adequate information to local communities about the terminal works; adjustment of the direct and indirect areas of influence; development and implementation of a Mangrove Compensation Plan; en
suring that fishing activities can continue, that small boats can move around, and consult and inform fishermen as to any restrictions before, during and after dredging activities and; adjustments to the Environmental Management and Monitoring Plan and of the Social Management Plan for the Project.



As part of the development of Phase II, the Company is developing a supplemental report to further enhance the Phase II EIA submitted to Colombian authorities and align it with IFC’s PSs and GIIP. Among the areas to be enhanced include: an update and additional details on the project description for Phase II; an assessment of the potential cumulative impacts to those of Phase I, including impacts on water quality, light, air, noise, vibrations, social issues as well as long-term impacts on the surrounding marine ecosystem, hydro-biological conditions and specifically on the nearby mangrove (with possible secondary effects on fish and other marine species); an inventory of mangrove areas and the ecosystem services they provide; an analysis of the risks and impacts related to the dredging material disposal area; a characterization of any sensitive biodiversity/ fisheries areas that may be impacted by the dredging activities and; the gathering of complete quantitative data on the socio-economic conditions of resource users of Estero Aguacate.



Management Program: As mentioned above, TCBuen has developed a number of policies, procedures and management plans aimed at addressing the social and EHS aspects of the Company for Phase I. These policies, procedures and plans will also be applicable for the expansion phase (Phase II) and include, among others (i) social and environmental management - construction; (ii) training; (iii) mangrove and ecologic restoration; (iv) protection of terrestrial fauna; (v) aquatic ecosystems; (vi) hydro biological resources; (vii) water quality; (viii) solid waste management and recycling; (ix) liquid waste management; (x) construction materials; (xi) sustainable use of natural resources; (xii) air and noise pollution control; (xiii) dredging and dredge disposal; (xiv) quarry; (xv) construction camp installation and decommissioning; (xvi) fuel storage and handling; (xvii) occupational health and safety; (xviii) local work hiring and management; (xix) landscape design; and (xx) consultation and community engagement.



As mentioned above, the Company is in the process of enhancing its Management System for alignment with IFC’s Performance Standards and which will be commensurate with the existing and potential risks and impacts of the Project. This will includes the development and/or enhancement of any necessary management plans and procedures to address existing and future ESHS risks from the Project.



Organization: In terms of ESHS staffing for the Company, the EHS Department is currently managed by two people (an Environmental Engineer and Forestry Engineer) and the Social Department is managed by two social
specialists.



Based on the experience gained during the construction of Phase I, one of the key challenges expected for Phase II will be the effective implementation of the Management System’s components and contractor and subcontractor supervision. Also, specific to the social aspects of the Project, the fact that the TCBuen port has daily engagement with neighboring communities, additional efforts are needed on proactive management of social issues and effective community engagement. In this sense, the Company has agreed to enhance their ESHS team with the hire of an Environmental and Social Manager with experience in the application of international standards, particularly IFC’s Performance Standards to support Terminal construction and operational activities.



The Company has developed EHS training programs for its own personnel and also ensures that its contractors provide adequate training to assure that all workers have the skills to perform their activities in a safe, healthy and environmentally responsible manner. All workers receive an orientation on EHS issues prior to starting work and job-specific training is provided to those in special type of activities.



Monitoring and reporting: The following monitoring is undertaken by the Company for Phase I activities: (i) Aquatic ecosystems monitoring (only for construction); (ii) Hydro-biological monitoring; (iii) Water quality monitoring; (iv) Air quality monitoring; (v) Noise monitoring; (vi) vibrations monitoring; and (vii) Limited and ad-hoc monitoring of resettled families and displaced subsistence fishing. As part of Phase I, TCBuen is also continuously supervised by the MAVT and required to submit quarterly compliance reports to the government.



During construction activities for Phase I, the construction and dredging contractors’ environmental performance was monitored continuously by the Independent Construction Supervision firm on behalf of TCBuen. Monitoring and supervision for Phase II will also follow the same requirements.



Additionally, since 2008, an internationally recognized environmental consultancy firm (ERM) conducts quarterly monitoring visits to TCBuen to ensure compliance with IFC’s Performance Standards on behalf of an Equator Principles Bank that participates in the Project. TCBuen produces regular internal reports of ESHS performance which are submitted to management for review. This independent monitoring will also continue as part of Phase II.

As part of IFCs investment, the Company is improving its monitoring program to make it more formal in nature and participatory. This program will include additional information on indicators and methodologies based on the nature of the risks as well as Phase I project experience and will support the Company to implement corrective actions as part of its continuous improvement cycle.



Emergency Preparedness and Response: The Construction and Dredging Contractors will have in place project-specific
Contingency Plans, including spill prevention and control procedures, as part of their EHS Management Plans. For the operational stage, TCBuen has developed a Contingency Framework that defines the content of a detailed Contingency Plan for the Terminal. The Framework includes the Company’s policy in regards to emergency preparedness and response, provides an overview of expected risks and scenarios, and defines responsibilities. The Contingency Plan includes detailed emergency response procedures and protocols, drills and training program, spill prevention and control measures. The Company also insures that neighboring communities are informed of the key procedures related to high risk issues.



As part of the contingency planning for Phase I, in July 2012, TCBuen performed a “Vulnerability Assessment” of its activities which provided recommendations to develop a prevention and emergency preparedness training program to include all Company personnel, including contractors (not only the Brigade) and improvements in maintenance programs for the site’s alarm system, additional transportation support and the development of a preventative and corrective maintenance program for emergency equipment.



As part of its continuous improvement focus, the Company is enhancing its Health and Safety Management System to incorporate the recommendations from the Vulnerability Assessment dated July 2012. Also, the Company will develop a Risk Assessment for the expansion of the port terminal, including dredging activities considering risks of natural disasters (i.e., earthquakes, tsunamis, hurricanes, flooding, etc) and specific risks inherent to the port terminal’s activities (i.e., vessel collision, fuel spills, explosions , fires, etc). Also, the Risk Assessment shall take into account to what degree the expansion activities may increase the risks to the environment and the local communities.

Human Resource Policy and Management: TCBuen gives priority to hiring local people when skills match available jobs. Local workers are defined as residents of Buenaventura Distrito 5 neighborhoods. As part of Phase I Construction, approximately 900 direct and 800indirect jobs were created. Also as part of current Phase I operations, the Company employs 344 people of whom 23% come from project-affected communities, 58% from other areas of Buenaventura, and 19% from other regions. Once the expansion (Phase II) is completed, the Project is expected to generate 84 permanent jobs for mostly local people.



TCBuen and the dredging contractor have in place Internal Labor Policies –ILP- (Reglamento Interno de Trabajo) consistent with Colombian law and IFC’s PS2 requirements that clearly defines the rights and obligations of employees and the employer, including: compensation and benefits; working hours, overtime and leave policy; occupational health and safety policy; grievance redress procedure; and harassment policy, among others. According to local labor law, all employees must receive copies of their contracts upon being hired. Currently workers are not unionized, but in compliance with the ILPs and Colombian law, workers are allowed to form or join worker’s organizations and to bargain collectively. TCBuen nor its contractors engage in any child or forced labor.



As part of Phase I and applicable to Phase II, the Company has also developed a feedback mechanism to register and address complaints and suggestions made by TCBuen employees. It is important to note, however, that the existing mechanism only applies to individual directly contracted by the Company and excludes any non-direct hires.



As part of IFC’s involvement, the Company is revising its existing Grievance Procedure to include direct hires, contractors and subcontractor workers as well as any other human group directly or indirectly affected by construction of phase II and combined operation of phase I and II.



Occupational Health and Safety (OHS): As part of Phase I, TCBuen and the Construction and Dredging Contractors conducted OHS risks analysis and have in place comprehensive OHS Policies, Programs and Contingency Plans based on Colombian requirements. All personnel are issued appropriate Personal Protective Equipment (PPE) and provided continuous training on its use. Additionally, in compliance with Colombian law, TCBuen has in place an employer-employee committee on health and safety oversight (Comité Paritario de Salud Ocupacional – COPASO). In accordance to Colombian law, all employees including contractors and their employees are covered by an Occupational Risk Insurance and are required to abide by the Company’s OHS guidelines. The construction and dredging Contractor’s OHS management programs also included project-specific training plans; safety inspection programs; procedures to investigate accidents and define corrective actions; safety performance indicator
s; different safe work procedures; and work permit system. Additionally, the dredging contractor used for Phase I and to be used by Phase II has in place an OHS program which includes specific procedures related to work at sea, including compliance with MARPOL and IMO’s Safety of Life at Sea Convention (SOLAS), among other international conventions.



As part of the construction of Phase I (11 months), OHS statistics have included 11 accidents and 0 fatalities. For the operations phase (January 2011 to June 2013), there have been 59 accidents and 0 fatalities.



In September 2012, the Company commissioned “Colmena y Riesgos Profesionales” to conduct a site inspection to assess the status of the traffic signals at the site. The report identified 13 findings related to traffic management and traffic signals together with recommendations to improve performance.



As part of IFC’s involvement, the Company is enhancing its existing OHS program to include, among other actions: the reporting of both incidents and accidents, including vehicle collisions; implementing an investigation and corrective action mechanism as part of the new approach to reporting incidents and accidents; develop a formal health and safety training procedure as part of its ESHS Management System and; implement the recommendations of the Traffic Signaling Inspection Report dated September 2012.

Pollution Prevention: Given the nature of its operation it is not expected that the expansion of the terminal (Phase II) will generate significant amounts of gaseous emissions or effluents the set of 13 yard cranes will operate electrically which turns down any gas emission. Power consumption is expected to be moderate and will be supplied from the national grid, with back-up generators. Greenhouse gas emissions associated with this project will be negligible. As for Phase I, the water required for the administrative buildings and limited operational activities will be sourced from the municipal water system.



According to the ESIA submitted to ANLA for the Environmental License Modification, the construction of Phase II will generate short-term impacts related to dredging activities and the construction of the mooring hitch in relation to water quality and the seabed (substratum) and noise and air quality (particulate matter and gases).



Noise: TCBuen assessed noise impacts of Project activities in the original ESIA from 2007 as well as in the last Modification submitted in November 2012. The environmental management plan for both assessments also includes a Noise Monitoring Program.



While the area where the Project is located is zoned as an industrial area, there are communities directly adjacent to the site. According to Colombian Resolution No. 627/2006, the port is categorized as Sector C (Intermediate Noise Subsector) with a daytime and night time maximum noise level of 75 dB(A).



As part of its ongoing monitoring program, TCBuen has performed noise monitoring rounds in March and August of 2012 and one last monitoring round in June 2013 to identify potential impacts from its operations. Monitoring points were distributed in nine locations within the site boundaries. Based on the results obtained from the 2013 campaign, average noise levels did not exceed the maximum noise level permitted by Colombian legislation in industrial zones.



Based on this information and its knowledge of the equipment and machinery of the site, in December 2012, TCBuen developed a noise map which identified the noisiest areas of the Project. Based on this information, and in order to mitigate some of the identified impacts to receptors, the Company planted (with support from the community of La Inmaculada) a bamboo (Bambusa Arundinacea) fence along approximately 340 meters of the boundary between the Site and the community. The results on the effectiveness of these measures are yet to be determined.



As part of the activities related to Phase II, the Company will update the noise map and incorporate Phase I monitoring results. This, to determine which activities cause the highest noise levels, peak noises locations and incremental impact of Phase II on receptors. Also the Company will review the effectiveness of its management actions implemented to date to mitigate any elevated noise levels and evaluate the need for any additional m
easures to reduce community and employee exposure to noise.



Vibrations: Based on the site visits by IFC and the independent consultant as part of Phase I, vibrations have been identified as one of the key concerns by local communities during construction and operational activities of Phase I. Based on concerns raised during the construction of Phase I, the construction contractor (Colpatria), made numerous repairs to houses in La Inmacualda to address structural and other types of damage attributed to the effects of construction-related vibrations on the houses. TCBuen has continued with these repairs during the operation of Phase I.



As part of ongoing activities to address this issue, in April 2012, TCBuen contracted Higiene & Ambiente to carry out a vibrations study which included vibrations monitoring during three days and three nights (coinciding with Phase I operations). The study included 70 locations within La Inmaculada with results compared to Colombian technical regulation NTC 5436-2 (building structures) and analyzed using the NTC 5436 curve. According to the results of this study, no critical vibrations-related impacts to nearby communities were detected.



According to the study, TCBuen site’s main vibrations are the result of the movement of vehicles and the impact of containers hitting the ground or each other inside the site. The study concluded that the vibrations occur intermittently. The passage of light vehicles and overall human movement (motorcycles, cars, trucks, etc.) represents the major contribution from outside the site. It is also expected that once construction of Phase II commences, vibrations will increase and accumulate with existing vibrations from Phase I operations.



In order to address potential issues related to vibrations from its activities, the Company will update existing environmental baseline information with the vibrations monitoring results. Also, the Company will assess vibrations’ impacts based on complaints received by local communities and develop a participatory monitoring program to assess vibrations in those areas reported by the communities to be affected. Finally, the Company will continue executing the participatory vibrations monitoring during the construction and operation of Phase II to assess the potential intensification of vibration-related impacts, and design and implement any necessary corrective action plans for minimizing and/or mitigating impacts.



Liquid Waste Management: The current Terminal’s design includes measures and equipment to minimize, segregate and treat wastewater, storm water and runoff throughout the facilities and particularly in areas such as vehicle maintenance areas. These measures include: wastewater treatment plants, oil/water separators (i.e. corrugated plate interceptors), grease traps, septic tank, etc. Given that the municipal sewage system does not reach the Terminal, as part of Phase I, the Company built two (2) wastewater treatment pl
ants with a capacity of 16,000 liters per day each that use anaerobic and slow sands filters. These plants will also be used as part of Phase II. Resulting treated water is tested periodically for quality and finally discharged into the Bay.



During operation, liquid wastes generated by ships (i.e. bilge waste, ballast water, sewage, and used oils) are managed by third parties which are licensed, insured to cover potential damages, and have in place environmental management plans. In accordance with MARPOL guidelines and under the Port Authority (Capitania de Puerto de Buenaventura) supervision, a Pollution Auditor is present during these operations. TCBuen requires these third parties to dispose of all waste in accordance with municipal requirements at designated sites.



Solid Waste Management: As part of Phase I, TCBuen developed an Integrated Solid Waste Management Plan (ISWMP) for construction and operation of the Terminal. This Plan will also be applicable for Phase II and includes an analysis of potential sources of solid wastes and defines procedures for its handling, storage, segregation, recycling, transportation, and final disposal. General solid wastes are collected by a licensed third party (Buenaventura Medio Ambiente SA ESP). Special procedures are in place to manage hazardous wastes such as spent solvents, and oily rags, empty paint cans, chemical containers; and used lubricating oils which are also disposed of by a specialized waste disposal company. The ISWMP includes the “Reciclando Ando Program” aimed at promoting environmental education and recycling activities in the 5 neighborhoods in the project’s area of influence, including possible income generation activities linked to recycling.



Water Quality: According to the ESIA submitted to ANLA in November 2012, water quality will be affected during the construction of Phase II due to the dredging activities in the access channel and the turning basin, as well as the construction of the mooring hitch. In addition, the 2007 ESIA identified and evaluated potential impacts related to construction activities for the expansion of the container storage areas. According to this most recent ESIA, anticipated impacts are related to the suspension of marine sediments, causing an increase in turbidity and dispersion of sediment in the water column. Both ESIAs (2007 and 2012) mentioned that the impact on water quality would be short-term and only within the direct area of influence.



The environmental permits submitted in 2007 and in 2012 included a Water Quality Monitoring Program as part of their Environmental Management Plan. TCBuen monitors water quality following the requirements established by Resolution No. 705/2006.



In November 2012, AG Consultores Ambientales was contracted by TCBuen to conduct water quality and sediment sampling for the environmental baseline to be included in the last permit application. Baseline monitoring was conducted at four locations
(in front of the North Patio; in front of the main pier; 1,300 meters west of the main pier; and 2,000 meters west of the main pier) and compared to Colombian legislation (Decree No. 159/1984). Some important findings included the confirmation of the presence of phenols in the locations close to the Piñal Bridge (location # 3: 0.0015 mg/l and 0.0055 mg/l) and the SPRBun (location # 4: 0.0030 mg/l and 0.0068 mg/l) in quantities below the regulatory limits; the presence of coliforms in locations close to the Piñal Bridge (locations # 3 and # 4 between 13 NMP/g and 120 NMP/g) where several residential properties discharge their sanitary wastewater and; the presence of Polycyclic Aromatic Hydrocarbons (PAHs) in concentrations reported as “considerably high” between 1.098 mg/l and 0.0643 mg/l in all locations.



Dredging: The approximate volume of sediments to be dredged as part of Phase II has been calculated at 241,890 m3 for the access channel and 80,667 m3 for the turning basin, totaling 322,557 m3 of sediments. Dredging activities started on May 15th and are expected to be completed by July 30th.



The dredging and disposal techniques will be the same as those used for Phase I. According to the Project Description, the dredging methods were selected based on the soil characterization and the dredge heads are designed to minimize material dispersion. The process consists of the vessel dredging the area (access channel or the turning basin) until it reaches capacity, and then traveling to the disposal area where the material is released. The entire process takes approximately four hours, repeated six times every 24 hours, and continuing 24 hours a day. GPS technology will be used to ensure that dredging material is disposed of at the correct site.



According to soils tests conducted by Proinsa Ltda on behalf of TCBuen as part of Phase I, the materials being disturbed by the project, while polluted by biodegradable organic materials contributed by the sanitary sewage discharges from the City of Buenaventura, do not contain high concentrations of toxic heavy metals or other pollutants that would require special disposal methods.

As part of Phase II permitting work, substratum baseline monitoring events within the Project area for Phase II were conducted by Ecoquímica Ltda in September 2012 and AG Consultores Ambientales in November 2012. Samples were analyzed for arsenic, cadmium, copper, chromium, mercury, lead and zinc. Due to a lack of relevant Colombian legislation and IFC guideline values, the results were compared against US EPA standards.



According to both the Ecoquímica and AG Consultores Ambientales, mercury concentrations on the substratum exceeded the selected criteria (0.696 mg/kg) at three of the four monitoring locations (6.19 mg/kg, 1.19 mg/kg and 0.87 mg/kg in September 2012; 5.15 mg/kg, 1.19 mg/kg and 0.83 mg/kg in November 2012). These results are in line with the historical levels reported INDERENA (1988), CP
PS/PNUMA (1988), Universidad del Valle (1995), INVEMAR 2001 and CCCP 2006.

for the Buenaventura Bay. The monitoring reports suggest the source of this impact to be the gold mining facilities located along the Dagua and Anchicayá Rivers, which use mercury in their processes.



According to the Ecoquímica monitoring report, the mercury deposit in the sediment of the bay should be in an inorganic state and unavailable for bioaccumulation.



Same as for Phase I, TCBuen and the Dredging Contractor have in place a “Dredging and Dredge Disposal EHS - Management Plan (DDDEHS-MP)” designed following national and international standards and best practices.

The DDDEHS-MP includes the following components: oil and fuel management, waste management, training, and emergency preparedness and response procedures. Additionally, TCBuen has in place a “Dredging and Dredge Disposal Monitoring Program”, as required by the Project’s Environmental License Modification, covering the dredged areas, disposal site, and potentially sensitive areas in adjacent areas. The Monitoring Program includes, among other, the following components: water quality (i.e. sediment suspension and dispersion in the water column), biotic monitoring (metals bioaccumulation); protection and conservation of marine habitats.



For TCBuen Phase I, the Ministry of the Environment instructed the Company to use a government-approved open water discharge site for disposal of dredging material, located 36 km west of the project site (Resolutions No. 705 April 2006, No. 580 June 2002 and Resolution No. 1412 November 1995). The Company’s recent Environmental License extension for Phase II authorizes them to use the same site for disposal of Phase II dredging materials. The site, which is 20 to 40 meters deep, and which covers an area of 10 km2, is also used by other companies in the area including Sociedad Portuaria Regional de Buenaventura S.A. The disposal area has been divided into sectors to reduce the environmental impact of the disposal of the dredging material.



Management of Hazardous Materials (Hazmats): TCBuen and its contractors have in place clear procedures for the storage, handling and final disposal of hazmats during the construction stage. During operations of Phase II, it is expected that handling and storage of hazmats will be only an incidental part of the Terminal’s operations and that a minor fraction of the total cargo handled will be considered hazardous. The construction and operational procedures for the management of hazardous waste used during Phase I will also be applicable for Phase II.

Community Health & Safety: No significant risks or impacts on community health and safety are expected as result of Phase II of the Terminal’s construction and operation, and those that were identified during the ESIA have been mitigated through the ESHS-MP and the Contingency Plans described in PS1 and PS3. Even though the Terminal has direct access to the City’s exit road, the primary risk to community health and safety identified is associated with traffic safety, vibration and dust generated by the transport of construction materials, equipment, and workers to and from the Terminal during construction and by an increased volume of truck traffic during the operation phase. In addition to the associated mitigation measures included in the ESHS-MP (i.e. speed limits, dust control, etc) the Company is willing to acquire the properties located in close proximity of the Terminal that could be affected but no agreements have been reached yet (see Section on PS5). Additionally, TCBuen has developed an “Internal/External Traffic Management Plan for Operations” that not only defines the safety features for traffic inside the Terminal, but also a series of measures aimed at minimizing impacts outside the Terminal such as a waiting parking area for trucks outside the City, third party operated and a scheduling system that allows specific hours for trucks to pick-up or deliver cargo.



Security Personnel Requirements: For the operations of the Terminal, TCBuen engages the services of a private security company certified and supervised by the National Superintendence for Security Companies (Superintendencia de Vigilancia y Seguridad Privada). Personnel from the National Police are present at the Terminal.



During Phase I, TCBuen developed a policy on use of force and instructions on how to deal with aggression, robbery and intruders, and the Company carefully vets the individuals who work at the port through Atempi, the private security firm. Furthermore, security personnel are not stationed outside the port area, thereby minimizing risks to local communities.



As part of IFC’s involvement, the Company is developing a protocol for Human Rights background checks of security personnel; a Human Rights training program for private and if possible public forces and a Security Management plan complaint with PS4 focused not only on protection of TCBuen property but also on protection of surrounding communities and workers from abuse of force, discrimination, etc.

Protection and Conservation of Biodiversity: The existing Terminal has a footprint area of 27 hectares of which 14.6 hectares correspond to coastal mangrove characterized by heavy anthropic intervention, urban pollution, and biophysical deterioration. The affected area for Phase I represented only 0.16% of the total mangrove ecosystems in the Buenaventura Bay.



In order to approve the Project and issue the Environmental License for Phase I, the Government of Colombia (GoC) had to formally rezone the affected area given that the Colombian Pacific coast was legally designated as a forest reserve in 1959. As a condition of rezoning and Project approval, the GoC required TCBuen to offset mangrove losses in a 10:1 ratio (i.e., replanting 142 hectares of new mangroves) and aim for a survival rate of 75% of the new plants. Based on previous studies on mangrove ecosystems in the Buenaventura Bay, the regional environmental authority (CVC) identified various alternative areas for replanting that are located 20 km West from TCBuen. These areas were selected taking into consideration their current level of deterioration and capacity to regenerate, prioritizing those areas where the CVC has ongoing activities aimed at improving the livelihoods of Afro-Colombian communities with collective land rights.



As part of Phase I, TCBuen prepared a Mangrove Compensation Plan (MCP) with the following objectives: 1) reforestation of Red Mangrove (Rhizophora Mangle) in areas assigned by the CVC; 2) voluntary and active participation of Afro-Colombian communities settled in those areas in all components of the plan; and 3) promote the sustainable use of the mangrove by these communities. Also, as part of Phase I commitments, the Company has developed a Completion Report for the Mangrove Compensation Plan to document said activities.



As part of Phase II, it is expected that an additional 0.8 hectares of mangroves will be affected by Project activities. Also, according to the November 2012 ESIA, marine biodiversity will be affected during the construction phase due to the dredging activities in the access channel and the turning basin as well as construction of the mooring hitch. The 2012 ESIA also identified the impact on benthos communities to be moderate in magnitude but low in significance, given that the impact would be specifically limited to the direct area of influence (access channel and turning basin). In addition, the ESIA assessed the impact on fisheries, which were determined to be temporarily affected by the dredging activities.



As part of the development of the supplemental assessment report related to the ESIA for Phase II, the Company will identify and map specific mangrove areas that will be affected by the dredging works as well as the extent of impacts to the mangrove populations. The Company will undertake an assessment of biodiversity values and ecosystem services related to the project in line with PS6 and will develop a Mangr
ove Reforestation/Compensation Plan and other required monitoring, management and mitigation measures to align the project with IFC Requirements. Following completion of the work, the Company will also carry out a Mangrove Compensation Completion Audit Report to confirm alignment with PS6 requirements (see Action 2 of ESAP).

Community Engagement: The Project’s area of influence encompasses the Buenaventura District 5, which includes five neighborhoods (Inmaculada, Santa Fe, Miramar, Punta del Este and Santa Cruz) with a combined population of almost 18,000 people. These neighborhoods are “informal” and are among the poorest in Buenaventura with a large portion of its inhabitants lacking access to basic public services.

Although not required by the national legislation that applied in 2008-2009, as part of the ESIA process for Phase I, TCBuen conducted comprehensive consultation activities with project affected communities including the Communal Action Boards (Juntas de Acción Comunal) of the directly affected neighborhoods, the Local Administration Boards (Juntas Administradoras Locales), the environmental authority of the Valle del Cauca (CVC), and the Foundation for the Integral and Community Development of the Pacific (Fundación para el Desarrollo Integral y Comunitario del Pacífico). These activities were aimed at ensuring the free, prior and informed consultation of affected communities which has contributed to building a positive image and a good relationship with TCBuen.

As part of Phase II, the Company has also been providing information on the planned expansion to the communities in the port’s area of influence. This included a meeting on October 2012 with the participation of approximately 300 people from the communities of Punta del Este, Santa Cruz, Inmaculada, Santa Fe and Miramar to present the channel expansion dredging activities and the construction of the mooring hitch. Subsequently, in November 2012 smaller meetings were held with each neighborhood committee (Juntas de Accion Comunal) with the same purpose.

The Environmental Modification (0375/2013) requires that TCBuen carry out a number of consultation meetings with the fishermen from Estero Aguacate and representatives of the Neighborhood Committees. This to address concerns not address in the October 2012 meetings and to resolve doubts and address expectations.

In accordance to the project’s commitments for the Phase I the Company established a community liaison office in the Inmaculada neighborhood. Since Operation of Phase I started, the Company maintains contact with community leaders and member and conducts punctual information, consultation, and engagement with surrounding communities, as needed. Additionally, TCBuen disseminates information regarding specific activities (i.e. beginning of dredging activities) to affected communities through brochures and radio. TCBuen is also planning on disseminating an annual social responsibility publication to the community and other stakeholders. The Company has prepared a Community Engagement and Information Plan aligned with IFC’s PS requirements to document the consultation and disclosure process to date and to define activities to ensure ongoing engagement with communities during the life of the project.

Grievance Redress: TCBuen has developed a grievance redress procedure to receive, register and monitor complaints, claims and suggestion by project-affected people. This procedure is included in the Company’s PCCRP and follows IFC’s PS requirements. All complaints can be lodged at the Company’s Community Liaison Office or through TCBuen’s or the construction contractor’s community relations officers. The Company monitors the status of each complaint, the relevant area or location, and the date of response and the solution given to the person. Each individual case is evaluated by a committee that meets once a week.

As part of IFC involvement, The Company will strengthen grievance recording and management securing opportune response and action to community complaints.

Community Development: In addition to the community development impacts expected from the “Reciclando Ando Program” and the “Mangrove Compensation Plan”, TCBuen supported various community development initiatives through the Fundación Nuevo Pacífico (http://www.fundacionnuevopacifico.org), including: i) Job training: Under an agreement with the National Learning Service (Servicio Nacional de Aprendizaje - SENA) training in tasks related to the future operation of the Terminal, and ii) SME: The Fundación provided training on small and medium enterprises (SME) start up so that the local community, particularly women, can develop the necessary capacity to become suppliers of the Terminal, and other customers, with products and services such as industrial clothing, laundry, mangrove care, catering, port logistics, foreign trade, information technology and others.

The Environmental License including a description of the Project’s EHS Management Program and other administrative procedures related to the project have been publicly disclosed by the MAVDT since 2006 via newspapers and website its (http://www.minambiente.gov.co/).

Relevant project information, including the ESIA for Phase II and key management plans will be available to the public through TCBuen’s website and community liaison office at La Inmaculada (Calle 7a No. 28 ASN - 21 Calle Divino Niño, Barrio La Inmaculada).

For additional information please contact:

Sociedad Portuaria Terminal de Contenedores de Buenaventura S.A.
Gabriel Corrales, Gerente General
Carrera 28A Nro. 7-152 Vía Alterna Interna
Buenaventura, Colombia
Phone: (57) (2) 24 10240 – 2410241 ext 105-109 http://www.tcbuen.com

Broad Community Support is not applicable for this project

Task Title/Description	Anticipated Completion Date
Secure an independent consultant to carry out a Fishermen Compensation Completion Audit Report in line with PS5 requirements.	12 months after project completion
Secure an independent consultant to carry out a Mangrove Compensation Completion Audit Report in line with PS6 requirements.	12 months after project completion