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
PS 4 – Community Health, Safety and Security
If IFC’s investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards

The proposed investment is a Category B project because the environmental and social (E&S) impacts that may result from constructing and operating a solar power generation and transmission facilities are limited and can be avoided or mitigated by adhering to generally recognized good practices and design criteria.
The EIA for the project reports that environmental and social impacts and risks are low to moderate. Neither new access roads nor right-of-ways for transmission lines will be built. The company has acquired 100% of the necessary land for the project under a willing-buyer willing seller basis without recourse to expropriation, thus PS 5 on Land Acquisition and Involuntary Resettlement is not considered applicable. The site is located within modified habitat, mostly composed of pasture lands and annual crops, and patches of dry forest and secondary vegetation, therefore PS6 on Biodiversity Conservation and Sustainable Management of Living Natural Resource is not applicable. No indigenous Peoples or territories are within the direct or indirectly area of influence of the project, therefore PS7 on Indigenous Peoples is not applicable. The project area does not have any cultural or historical significance, nor is it located in a suspected archeological area, therefore PS8 is not applicable. The company will however develop a chance finds procedure as part of its management system in the event any cultural or archeological sites are identified. Also, as per a document issued by the Honduran Institute of Anthropology and History (Instituto Hondureño de Antropología e Historia, INAH; Dictamen No. 055-SGP-2014), one site has been identified that likely has a contemporary structure and additional supervision by the INAH is needed during any land clearance around this area.

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 Assessment: COHESSA engaged a qualified E&S consulting firm (Ambitec S.A. de C.V.) to prepare the EIA for the project. The environmental license is still pending from the Secretaria de Recursos Naturales y Ambiente (SERNA). The EIA followed the terms of reference (ToR) to comply with SERNA requirements. The EIA process demonstrated that E&S impacts and risks are low to moderate in nature and for the most part temporary. During construction these impacts may include: (a) Land use change and changes in the landscape; (b) topsoil removal; (c) limited vegetation clearance of patches of low dry forest as a result of site preparation; (d) air pollution, reduction in air quality, and increased ambient noise as a result of construction traffic and the exhaust emissions from construction traffic and heavy equipment; (e) potential contamination of surface waters from construction and accidental oil/fuel spills; (f) generation of solid and hazardous construction waste; (g) influx of construction workers; (h) potential community health and risks related to construction traffic and panel transportation in public highways; (i) pressure over water resources and availability to nearby communities; and (i) occupational health and safety risks to construction workers. During operation, the main E&S concerns relate to (j) pressure over water resources as approximately 1,440,000 liters per year are needed to maintain and clean solar panel modules; (k) permanent landscape modifications, and (l) community risks associated with the permanent presence of security forces. All these impacts can be mitigated with established pollution prevention and control technologies and by applying good international industry E&S management practices (GIIP), such as those required under IFC Performance Standards and those described in applicable World Bank Group EHS Guidelines.

Even though the EIA was relatively comprehensive, during appraisal IFC identified a few gaps that will be addressed as per the agreed Environmental and Social Action Plan (ESAP). These include: (i) the need to enhance the ESHS Management System (ESHS MS) for alignment with GIIP; (ii) the need for an assessment of potential project impacts on water resources and users (i.e. water needed for panel cleaning vis-à-vis existing and future competing water users), and (iii) a robust stakeholder engagement process and management.

Environmental and Social Management System and Organization: COHESSA has developed an Environmental, Health and Safety Policy and an EHS Manual (Manual de Gestión de Medio Ambiente, Salud y Seguridad). COHESSA’s management is committed to adopting and implementing this plan to assess and manage environmental, social, health and safety risks for the project.

The company has developed procedures for: Occupational Health and Safety (OHS) of contractors, personnel protection equipment (PPE), traffic control, fall prevention, electricity safety, hot work permit, fal
l prevention and chemical management. In addition, as part of their EHS Manual, construction contractors will be required to have on-site occupational health and safety (OHS) supervisors for their operations and the company will conduct periodic ESHS performance evaluations of the contractor to assess their performance.

As part of IFC’s involvement, the company will complement its ESHS-MS for the construction and operation phase with: monitoring actions and frequency, performance indicators and the responsible entity; and will ensure that the construction contractor and project personnel are adequately trained to undertake ESHS activities. The ESMS will also include a contractor monitoring procedure, and the necessary ESHS management plans and procedures to address existing and future risks (See ESAP Action # 2).



The company’s current organizational arrangements include an EHS Manager that reports to the Project Manager. The EHS Manager in turn, oversees the responsibilities of an EHS Inspector and a Security Leader.

COHESSA will dedicate qualified on-site personnel to handle the ESHS aspects of its operations and will be responsible for the implementation of the ESHS-MS during project construction and operations. In addition, as noted in the ESAP, COHESSA shall ensure that the project has a qualified specialist in charge of community engagement activities, including the appropriate implementation of an effective Stakeholder Engagement Plan (SEP) and Grievance Mechanism (See ESAP Action # 3 and 4).

Training Monitoring and Reporting: COHESSA will periodically conduct ESHS training for all its employees and contractors on aspects such as: safety audits, job related risks, hazardous materials, fire prevention, and proper use and disposal of residues and waste products. The company will apply a monitoring program to assess the ESHS performance of its operations. The ESHS officer will assure compliance with the local legislation and keep record of all relevant air emissions, noise, discharges, OHS statistics, solid and hazardous waste generated at site, as well as water usage. COHESSA will submit annual environmental and social performance reports to regulators, lenders, and investors.

Human Resource Policy and Management: COHESSA has committed to develop and implement a Human Resources (HR) Policy and procedures based on IFC PS2 requirements (See ESAP Action # 5). The HR Policy, procedures, and component of the ESHS-MS, specifically will include provisions related to non-discrimination and equal opportunity, wages and benefits, no engagement in forced or child labor, and adequate working and living conditions. These procedures will be appropriately communicated to all employees.

The company will also prepare a worker’s grievance mechanism aligned with PS2 to define the channels available to submit grievances (i.e. mail, phone, verbal report to immediate supervisor/reporting authority; etc.) and will maintain a database with information regarding grievances outcomes.

It is expected that the proposed project will generate about 300 jobs during the construction peak. The majority of non-skilled workers are anticipated to be locally hired from the surrounding villages. The project will generate approximately on average workforce of 20 jobs during the operation phase. It is anticipated that the workers will live in the community closest the project site. No construction camps will be built. The company will make an effort to hire as many workers from the local communities as possible.

Occupational Health and Safety (OHS): The company developed and is implementing an OHS management system. As per Action # 2 of the ESAP, the OHS-MS shall include safety measures for worker safety and use of personal protection equipment (PPE), preventive equipment maintenance, daily safety chats and permanent training. The company will also focus on the prevention of risks related to work at heights, work with live power lines and equipment, fire hazards, exposure to chemicals, and exposure to electromagnetic fields.

This is a renewable energy project and it responds to a need to increase and diversify the energy capacity and matrix in Honduras to new, clean and renewable sources of energy, reducing a dependence on fossil fuels. The project is expected to reduce the generation of CO2 emissions from energy generation and electricity use in Honduras by 71,643 tons CO2-eq per year.

Hazardous and Non-Hazardous Waste: Non-hazardous waste generated during construction and operation will be disposed according to the requirements placed by the municipality. The company has also developed a procedure to properly manage hazardous and non-hazardous wastes.

Water and wastewater: The water requirements for construction will be supplied by truck. The water for human consumption for both construction and operation phases will be supplied by bottled water. During the 10 months of construction, the company estimates a use of 125,000 liters. During operation, to maintain and clean the solar panels, the company estimates a water usage of 1,440,000 liters/year (2 cleanings per year during dry season; 10,000 liters of water per MWp). As per Action #1 of the ESAP, the company will assess existing sources of water and provide a comprehensive water balance to assure that there is sufficient water to satisfy project operational needs without jeopardizing existing surface or groundwater supplies (e.g. if water wells are dug on site), to ensure there will be enough water for existing and future domestic, agricultural and or other foreseeable industrial uses (e.g. other photovoltaic project in the area).

The construction phase will generate only domestic sewage. The operation phase will generate sewage and discarded panel wash water. The domestic waste water will be collected and treated in septic tanks. The sludge produced will be removed by an authorized company. Typically, minimal amounts of wastewater result from the panel cleaning activities, and wastewater falls to the ground beneath the photovoltaic modules and does not need to be treated, since it just contains dust and particulate material that deposits on the panels.

Air quality: The main source of air emissions (SO2, NOX and particulate matter) during the construction phase relates to the movement of equipment and vehicles. Prevention measures during this phase will include sprinkling of water on roads and periodic checks for proper vehicle and equipment maintenance. The impact on the air quality during the operation phase is very limited since the operation does not generate air emissions.

Community Health and Safety: The project will have low negative impacts to the nearby communities. Any potential induced influx to nearby areas resulting from the construction phase will be due to the expectation of new employment opportunities. However, it is anticipated this impact will be temporary given the short duration of the construction phase which will take approximately 10 months. The construction contractor will provide transportation to its personnel. Traffic volumes due to workers commute and transport of equipment and materials to the construction site are not expected to be considerable; however, there is a risk of traffic-related accidents. The company, along with the contractor, will establish the optimum transportation routes, traffic management measures, and the appropriate site access provisions that will reduce impacts through development of a Transportation Management Plan as part of the enhancement of the ESHS MS (ESAP Action # 7).

The company currently has an emergency response plan in place. COHESSA will develop dedicated emergency response training programs for all new employees as well as in-house and off-site training for first responders.

Security: The company will have a private security contractor providing armed personnel. Given the inherent security risks prevailing in Honduras, in alignment with this Performance Standard, COHESSA will commission a security risk assessment from a qualified security risk firm. This assessment shall result in a comprehensive security management plan that will be (a) commensurate to the security risks, (b) aligned with the Voluntary Principles on Security and Human Rights and (c) assure that security personnel are trained and operate consistently with such principles and Performance Standard 4 (paragraphs 12, 13 & 14). (See ESAP Action # 6). The plan will include a grievance redress process associated with the conduct of security personnel.

COHESSA has undertaken a consultation process with the communities surrounding the project in a 6km radius and included participants from the following villages: El cohete, Agua Fría, La Llave, Talpetate, Ceibilla and Quebrada Honda, among others. Most of the issues discussed were related to employment and expectations due to the presence of the project. In compliance with Honduran requirements, the developers conducted a public consultation / socialization process (Proceso de Socialización a Cabildo Abierto) with relevant stakeholders on March 25, 2014. COHESSA will, in addition, develop and implement a Stakeholder Engagement Plan (SEP) in alignment with, good industry international practices, and IFC Performance Standard 1 requirements (See ESAP Action # 3. The SEP will include (a) a stakeholder identification and analysis process; (b) the establishment of an effective and transparent ongoing stakeholder consultation/engagement process; and (c) an external grievance mechanism. The engagement process shall assure that all those potentially affected by the project and other stakeholders understand the project design as well as its potential environmental and social impacts and risks, and will address and effectively respond to their concerns. The company will design a procedure to receive, register, respond to and monitor community grievances during construction and operation. This procedure will be designed to be easily accessible, efficient, and to respond to the grievances in a culturally appropriate way. The complaints will be handled by a local community liaison officer to be appointed for the project.

The Company will make a copy of the ESRS/ESAP and EIA available in the following location for a period of 30 days starting on: Location: 3 Avenida, 11 y 12 Calle NO, Barrio Las Acacias, San Pedro Sula, HondurasTelephone: (504) 2561 4636 Fax: (504) 2561 4636 ext. 1109For further information, questions or comments please contact:Contact person at COHESSA: Edgardo TaboraAddress: Nacaome, Valle, HondurasTelephone: (504) 9977 3488e mail: mailto:edgardotabora3@gmail.com

Broad Community Support is not applicable for this project

Valle Solar PV(35080) Supervision Disclosure Snapshot – Version 2
Description	Anticipated Completion Date	Status	Comments	Completion Date
COHESSA shall assess the impacts of water withdrawal during construction and operations on nearby users. Based on the assessment, a water management plan shall be developed including a water balance and justification for the extent of water usage on the site considering both environmental, social and financial factors. COHESSA will perform an assessment of the water requirements during operations and its effects on competing uses and will use its best effort to coordinate a sustainable water use with relevant nearby users.	31-Mar-2015	Completed	Completed	3/30/2015
COHESSA will enhance its Environmental, Social and Occupational Health and Safety Management System (ESHS-MS) for the construction and operation phase. This shall include monitoring actions, frequency of monitoring, performance indicators and the responsible entity; contractor management and provision of ESHS training to staff and contractors.	01-Jan-2015	Completed	Completed	10/26/2018
The Company will develop a Stakeholder Engagement Plan (SEP) aligned with GIIP which shall include a community grievance mechanism.	01-Nov-2014	Completed	Completed	3/5/2015
COHESSA shall appropriately staff the ESHS unit, including as a minimum an on-site ESHS focal point during construction, and support staff; including a Community Liaison, and an OHS Officer. The Community Liaison Officer will be responsible for managing social risks and impacts, including the implementation of the Stakeholder Engagement Plan and Grievance Procedure.	01-Nov-2014	Completed	Completed	12/1/2014
COHESSA will ensure that its Human Resources Policy and procedures are in line with IFC’s Performance Standard 2 and with Honduran labor laws; and will ensure that those implemented by the construction contractor are consistent with company commitments COHESSA will develop and make available a grievance mechanism for workers, including contractors.	01-Jan-2015	Completed	Completed	1/19/2018
COHESSA will commission a Security Risk Assessment for the project and will develop a Security Management Plan (SMP), including a training module for management and security staff. This SMP shall be aligned with the Voluntary Principles on Security and Human Rights and with the requirements of Performance Standard 4 (paragraphs 12, 13 & 14).	31-Mar-2015	Completed	Completed	3/16/2018
COHESSA will complement its current ERP to include dedicated emergency response training programs for all new employees as well as in-house and off-site training for first responders. The plan will also include the communication to and training of the communities related to response to emergencies as appropriate. In addition, the company, along with the contractor, will establish: the optimum transportation routes, the traffic management measures, and the appropriate site access provisions that will reduce impacts to the community, as part of the enhancement of its EHS-MS.	01-Nov-2014	Completed	Completed	3/5/2015