34211 - TCell

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Environmental & Social Review Summary

Project Number

34211

Company Name

Indigo Tadzhikistan ZAO

Date ESRS Disclosed

Apr 11, 2014

Country

Tajikistan

Region

Central Asia and Turkiye

Last Updated Date

Aug 8, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : May 27, 2014
Signed : Jun 13, 2014
Invested : Aug 1, 2014

Sector

Mobile Telephony

Industry

Telecommunications and Technology

Department

Gbl Infrastructure & Natural Resources

Project Description

The Project involves a proposed corporate loan from IFC of US$30 million to be used for capital expenditures to enable TCell (the “Company”) to expand its services and its geographic reach within Tajikistan over the next three years, with a total project cost of US$100-102 million. The Company intends to grow its mobile broadband and value added services, its 4G LTE network, and its fixed broadband offering.

TCell is wholly owned by Central Asia Telecommunications Development B.V. (“CATD BV”), a holding company incorporated in the Netherlands. In turn, CATD BV’s is a joint venture between TeliaSonera, headquartered in Sweden, and the Aga Khan Foundation for Economic Development (“AKFED”). TeliaSonera is strategic investor in TCell and a leading international telecom operator with operations in 20 countries across Northern and Eastern Europe, Spain and Eurasia.

TCell owns and operates four administrative buildings, one in Dushanbe (12 floors), one in Khujand (3 floors), one in Kurgan-Tyube (3 floors), and one in Kulob (2 floors). The buildings in Dushanbe and Khujand each incorporates a data center, which will be upgraded. The Company also owns and operates three warehouses, one in Dushanbe, one in Khujand, and one in Kurgan-Tyube. TCell also operates an underground cable network exists across cities and within cities, and this network will be expanded under this project. TCell directly owns and operates 132 retail outlets, and otherwise distributes its products through retail outlets operated by other companies. The Company owns and operates 1469 sites, including 164 mobile telecommunications towers, and plans to develop a number of new sites.

Overview of IFC's Scope of Review

The review of this project consisted of a site visit by IFC staff in February 2014 to TCell in Tajikistan, to obtain direct understanding of its proposed operational activities. IFC also appraised a company overview, land acquisition documents, a sample employment agreement, and a collective bargaining agreement.

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

The key environmental and social (“E&S”) issues associated with the project are in the construction of towers and laying of cable; labor and working conditions (including employee and contractor occupational health and safety); and pollution prevention and abatement.

IFC’s appraisal considered TCell’s E&S management policies and procedures and gaps between them and IFC requirements. Where necessary, corrective measures intended to close those gaps, within a reasonable period of time, are summarized in the paragraphs that follow. Through implementation of those measures, the project is expected to be designed and operated in accordance with Performance Standard objectives.

As there are no major adverse environmental or social impacts expected to result from the proposed project, and it is possible to avoid or mitigate any limited adverse impacts that might result, the proposed investment has been classified as a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects.

PS4, PS5, PS6, PS7 and PS8 are not considered applicable given the nature of the project’s operations.

Environmental and Social Mitigation Measures

TCell directly employed about 447 workers in 2013 and plans to increase that number to 465 in 2014. It indirectly employed about 20 workers through contractors in 2013, and plans to increase that number to about 30 by the end of 2014. Tcell also has a student internship program for gifted students. Interns are limited to 4 hour work days but gain valuable working experience as a result of the program.

TCell has signed a collective bargaining agreement applicable to all its employees. In addition, the Company signs an employment agreement with each employee, spelling out a number of human resources policies and procedures. The collective bargaining agreement notably provides for incentives including bonuses and prizes; a limit of 40 working hours per week for regular workers, and less than 40 hours for student interns and disabled employees; written notices and then reprimands before any dismissals; social security payments; measures for worker safety, professional development, and fee medical examinations.

Under IFC’s investment, TCell will develop human resources policies and related procedures to reflect the terms of both its collective bargaining agreement and its individual employment agreements. All relevant aspects of Performance Standard 2 will be covered in the new documentation. TCell’s human resources policies and procedures will cover the management of labor and working conditions for its own workers, and will also cover labor and working conditions for employees of TCell’s core contractors as required under IFC Performance Standard 2.

Under IFC’s investment, TCell’s human resources policies and procedures will be improved to include principles of non-discrimination in recruitment and during employment, and a mechanism for handling worker grievances with a channel for appeal of initial decisions. TCell’s policies and procedures will cover life and fire safety, and TCell will promptly install an appropriate fire extinguishing system in the equipment floor of Tecell Plaza.

TCell will ensure that its own employees as well as employees of any core, long-term contractors are provided with appropriate personal protective equipment and health and safety training for the type of work in which they are engaged. TCell will include terms in its agreements with all of its core contractors regarding labor and working conditions, to be consistent with local and also with IFC standards. Those terms will cover topics including health and safety training, and health and safety management. TCell will monitor compliance with those terms, and will seek improvement in the event that non-compliance is identified.

Stakeholder Engagement

TCell is committed to complying with IFC Performance Standards on disclosure and community engagement.

As a condition of IFC’s investment, TCell will develop procedures to cover public disclosure prior to the construction of any new TCell tower or any other free-standing facility, or any substantial laying, maintenance, or upgrading of optical fiber cable. Those policies and procedures will provide for TCell to post at least one sign at each new site at least three days prior to the start of work.

TCell’s policies and procedures will also include a commitment to follow up on any 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 TCell to engage with community members may be useful, then TCell will organize such a meeting.

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

Broad Community Support

Environmental & Social Action Plan

TCell (34211) Supervision Disclosure Snapshot – Version 2
Description	Anticipated Completion Date	Status	Comments	Completion Date
PS1. TCell will appoint at least one qualified person at its headquarters to be an E&S coordinator	15-May-2014	Completed	Completed	5/16/2014
PS1: TCell will adapt TeliaSonera’s corporate E&S policies/procedures and ensure that they provide for the following, all according to IFC standards: (a) performing E&S review prior to the acquisition, development, and/or management of all sites and facilities, (b) not proceeding with the development of any site that cannot be expected to comply with applicable E&S standards, or before all relevant local permits are obtained, (c) supervising E&S risks and impacts as they unfold, (d) screening potential key suppliers, vendors, and core contractors and selecting only those who can use documented procedures consistent with IFC and local standards, (e) including E&S terms in agreements with key contractors, vendors, and suppliers, covering all relevant topics, consistent with IFC standards, (f) monitoring compliance of contractors with E&S terms in their agreements, and requiring improvement in the event that non-compliance is identified, and (g) posting at least one sign measuring at least 8” x 11” at any planned construction site at least 3 days prior to construction; organizing a meeting if a substantial number of community members complain about the same issue; and providing information to community members on electromagnetic radiation.	30-May-2014	Completed	Completed	7/18/2014
PS2: TCell will improve its HR policies and procedures to provide for the following, all according to IFC standards: (a) a mechanism for handling worker grievances with a channel for appeal of initial decisions, (b) non-discrimination in recruitment and during employment, (c) promptly installing an appropriate fire extinguishing system in the equipment floor of Tecell Plaza, and (d) ensuring that employees of any core, long-term contractors are provided with appropriate personal protective equipment and health and safety training, inclusion by TCell of terms in its agreements with all of its core contractors regarding labor and working conditions, consistent with IFC standards, and monitoring by TCell of compliance with those terms, with improvement to be sought in the event that non-compliance is identified.	30-May-2014	Completed	Completed	7/18/2014

**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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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

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

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