33688 - Avantel LTE

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Environmental & Social Review Summary

Project Number

33688

Company Name

AVANTEL ACQUISITIONS LTD.

Date ESRS Disclosed

May 22, 2013

Country

Colombia

Region

Latin America and the Caribbean

Last Updated Date

Jun 12, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Oct 11, 2013
Signed : Nov 1, 2013
Invested : Nov 12, 2013

Sector

Mobile Telephony

Industry

Telecommunications and Technology

Department

Regional Industry INF LAC & EUR

Project Description

IFC is considering an equity investment in Avantel as well as an A Loan for IFC’s own account, and mobilization of additional financing in the form of an IFC B Loan and/or IFC-mobilized parallel loans.

Avantel is a wireless telecommunications company focused on providing integrated connectivity solutions to corporate, business and government clients in Colombia. The Company was founded in 1996 to provide trunking solutions to corporate clients based on IDEN technology to later expand into mobile telephony and value added services. IFC’s financing will be mainly allocated to the acquisition of spectrum and capital expenditure required for network deployment.

Avantel’s headquarters are in Bogota, and it has five main offices, 24 customer service centers elsewhere in Colombia, 2 warehouses, data center facilities, 200 iDEN base stations, 111 using Avantel’s own infrastructure, which include antennas on towers, monopoles, masts, and roofs of buildings, all involving land leasing.

Overview of IFC's Scope of Review

The review of this project consisted of a meeting and interview by IFC staff with management of the Avantel SAS (“Avantel” or the “Company”) in May 2013, and appraisal by IFC of technical, environmental and social information submitted by Avantel, including a Safety, Occupational Health and Environment (SSOMA) manual, with 30 annexes to cover individual topics.

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 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

PS5: Land Acquisition and Involuntary Resettlement issues are not expected to arise in this project, as sites will not be developed if they would involve physical or economic displacement of people.

PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources issues are not expected to be significant in this project.

PS7: Indigenous Peoples issues are not expected to arise in this project, as no local community members will be from peoples defined as indigenous under PS7.

PS8: Cultural Heritage issues are not expected to arise in this project, as sites will not be developed where such issues would arise.

As this project involves sites to be chosen only where no high risk exists, no major adverse environmental or social impacts are expected to result. As a result, it has been classified as a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects.

The key E&S issues involve construction of new facilities; health and safety for workers and community members; security services; community engagement; and biodiversity conservation. The proposed project will upon implementation of the specific agreed measures comply with IFC Performance Standards, IFC environmental, health and safety guidelines, and applicable country law, rules and regulations.

Environmental and Social Mitigation Measures

Avantel has policies and procedures for environmental and social management in the development and operations of its various facilities, including the management of key contractors. The main documentation of those policies and procedures consists of a Safety, Occupational Health and Environment (SSOMA) manual, with 30 annexes to cover individual topics.

Avantel’s SSOMA manual includes procedures for identifying, evaluating, and mitigating environmental impacts, covering topics such as electromagnetic radiation, noise, and other emissions, earthworks, erosion, emergency planning, water quality, flora, fauna, and cultural and economic impacts.

According to Avantel’s SSOMA manual, the Company maps potential sites according to transmission needs, and then considers the best potential sites in each searched area. Risks and impacts are subsequently identified and assessed relating to each potential site. Discussions are held with owners of potential sites to ensure that any concerns of landlords are resolved. Any concerns by landlords and local community members regarding a potential site are addressed and resolved before development of the site begins.

Avantel performs a monthly E&S assessment of its operations, as well as an annual diagnosis. The Company has an emergency plan in place to manage the impacts of any fire, explosion, terrorist action, earthquake, leaks or spills. It includes protocols for evacuation, medical emergencies, and rescue at heights.

Fire safety equipment is checked twice per year, and fire drills are performed once per year at relevant sites. Under IFC’s investment, Avantel will increase the frequency of fire drills to three times per year.

Under IFC’s investment, Avantel will be required to develop documented policies and procedures for managing any new site where issues involving biodiversity conservation and/or management of natural resources may arise, in order to ensure that local biodiversity and natural habitat will be preserved, and impacts on sensitive habitat will be avoided. Those policies and procedures will specify that Avantel will compile site-specific environmental baseline data to confirm that the site will not affect any sensitive habitat.

Under IFC’s investment, if Avantel ever outsources to contractors any core, long-term functions, then it will be required to include environmental terms in agreements that the Company signs with such contractors, and to monitor compliance with those terms.

Avantel’s policies and procedures will ensure that the company manages all relevant functions covered in IFC’s PS2 through PS8. The company will always obtain all relevant local permits prior to constructing or operating any new facility.

Stakeholder Engagement

Avantel has conducted environmental awareness campaigns providing tips to its customers on saving energy, water, and paper, as well as recycling mobile devices.

Under IFC’s investment, Avantel will always provide prior local disclosure by posting at least one sign at each new construction site at least three days prior to the start of construction.

Avantel will engage with local community members as needed on visual impacts and noise, as well as electromagnetic impacts, according to IFC’s standards. The Company will take into account public perception about visual impacts and noise during the siting process of all the types of facilities that it constructs, including telecom facilities, office and warehouse spaces, community facilities, and transmission lines.

Under IFC’s investment, Avantel will always be committed to following up on complaints from community members until they are resolved. If a substantial number of community members complain about the same issue, and circumstances indicate that a meeting for Avantel to engage with community members may be useful, then Avantel will organize such a meeting.

The Company will continuously make available information to community members on electromagnetic radiation from tower sites as needed, consistent with IFC’s Telecommunications Guidelines.

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.

Projects

Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Identified Applicable Performance Standards

Environmental and Social Categorization and Rationale

Environmental and Social Mitigation Measures

Environmental and Social Mitigation Measures

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

Stakeholder Engagement

Stakeholder Engagement

Local Access of Project Documentation

Broad Community Support

IFC's Determination of BCS

Environmental & Social Action Plan

Environmental & Social Action Plan

Press-Release

Related SII

Similar Projects

Information on E&S Complaints and Grievance Mechanisms

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