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

This is a Category B project according to IFC’s Environmental & Social Review Procedure as the E&S impacts associated with the project are limited as the project is sited within an existing industrial development area. The area is generally not suitable for agriculture and grazing and is not used for that purpose by local communities. The land ownership of the project area resides with the MDC, which is mandated by the Government of Jordan as the land owners of the MDA. There has been no physical or economic displacement with respect to this project, therefore PS5 on Land Acquisition and Involuntary Resettlement is not applicable to this proposed investment. No significant biodiversity values are associated with the site as the MDA area is largely considered to be degraded. Although Jordan is known to be located within a the Red Sea / Rift Valley flyway for migratory birds, Important Bird Areas (IBA) as designated by BirdLife International, are not located in the vicinity (the nearest one, Petra IBA, is approximately 25km to the west of the project site). For these reasons, PS6 on Biodiversity Conservation and Sustainable Management of Living Natural Resources is not applicable. There are no Indigenous Peoples in the project area, and therefore PS7 on Indigenous Peoples is not applicable. Jordan’s Ministry of Antiquities executed an archeological survey from the entire MDA area and found no archeological relics on the project site, therefore PS8 is not applicable. The project will implement in any case implement a Chance Finds Procedure in their ESMS.

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

As the project is in the very early stages, the full environmental and social
management system (ESMS) is still to be put in place and will largely consist
of an E&S Policy and H&S Policy, an Environmental and Social Management Plan
(ESMP) with monitoring actions, an overarching system for reporting and
tracking non-compliances, and an organizational framework. These actions are
included under ESAP Action Item number (#) 1. An emergency preparedness and
response plan and a stakeholder engagement plan (SEP) will also be part of that
system. The ESMP will follow from risks and impacts analysis as included in
the environmental and social impacts assessments (ESIA), which is under
preparation. The E&S related policies will be specific to project activities in
Jordan, reviewed and approved by the developer’s Managing Director and
applicable to the EPC contractor / O&M provider and sub-contractors.

The EPC contractor (Hanwha) is currently certified with ISO 9001, ISO 14001,
and OHSAS 18001 and has in place a comprehensive set of Environmental, Health
and Safety (EHS) Policies and Procedures. Hanwha will be responsible for
handover of the ESMS to the O&M provider (MASE) during the transmission to
operations. Training of MASE on ESMS will be part of that process.


Environmental and Social Assessment

The draft ESIA is under preparation by a local consulting company
(EcoConsult). The ESIA will be prepared according to the requirements of the
Jordanian Environmental protection law no. 52 / 2006 and will meet the
requirements of PS1. The target for ESIA completion is end-July 2014, and
public consultation via scoping sessions is underway (see section on ‘Client’s
Community Engagement’ in this document). As an annex to the ESIA, the
developer will conduct a review to confirm that adverse social impacts are not
incurred by semi-nomadic Bedouin communities, including project-related impacts
related to collective grazing as identified in ESAP Action Item #2.

The MDC commissioned a consultant (Bitar Consultants) to conduct a Rapid
Environment Assessment (REA) for the entire MDA, which included mechanisms for
stakeholder engagement and consultation, as well as performance requirements to
ensure environmental protection and a road map for environmental permitting for
any project planned in the MDA. The SEA also recommended mitigation measures
for potential adverse impacts related to construction, operation and
decommissioning phases for the entire MDA. The draft ESIA for the project is
being prepared in alignment with this overall assessment.

Management Program

The draft ESIA will include an ESMP for the construction and the operations
phases of the project (two separate plans). As identified in Action Item #3,
the ESMP will include mitigation and management measures with respect to solid
waste management, soil management, dust control, wastewater disposal, amongst
other topics. The ESMP will include monitoring actions, frequency of
monitoring, performance indicators and the responsible entity.

Also as identified in ESAP Action item #3, the developer will ensure that the
EPC contractor / O&M provider personnel are adequately trained to undertake
activities outlined in the ESMP and ESMS.

Organization

The E&S management team will consist of one on-site E&S focal point for the
construction and one E&S focal point during operation based off-site, as
identified in ESAP Action Item #4. Additional E&S support staff will be
procured during the construction phase to ensure that environmental management
practices are carried out. A community liaison officer will be retained for
both the construction and operations phase and will report to the E&S focal
point. The community liaison officer will develop and implement a local
benefits community action plan and will manage the community grievance
mechanism. The E&S focal point will be responsible for the implementation of
the ESMP, including monitoring actions.

Monitoring and reporting

Monitoring requirements will be included in the ESMP for the construction and
the operations phase the project as mentioned in the sub-section above on
‘Management Program’ in this document

Emergency Preparedness and Response

An Emergency Preparedness and Response Plan (ERP) is required for the license
issuance and will be designed to be location-specific (referencing muster
point, nearby emergency facilities, responsible entities on-site or in the
region, etc.). Each ERP plan will follow the US National Fire Protection
Association (NFPA) standard and will be developed for construction and
operation phases of the project. The EPC contractor / O&M provider will
provide adequate training to staff to ensure that workers on-site are familiar
with the ERP.

Human Resource Policy and Management

The developer will employ 40 to 60 workers during construction with a potential
peak period of 100 workers, and 5 workers during operations. Arabia One will
develop a local hiring plan to encourage qualified recruitment from Ma’an city
and will use best efforts to coordinate local hiring efforts with neighboring
PV developers in the MDA. Preliminary indications show that the number of
potential local hires from the Ma’an Vocational Training Center is expected to
reach up to 10 hires during the construction phase and up to 2-3 hires during
the operation and maintenance of the plant. If workers accommodations are
required on site, the developer will adhere to IFC’s Worker’s Accommodation
guidelines for construction.

As identified in ESAP Action Item #5, Arabia One will put in place a Human
Resources Policy and Procedures in line with IFC’s Performance Standard 2 and
with Jordanian labor law. Given the nature of the industry, the Human
Resources policy and procedures will place emphasis on the management of
contractors and will apply to the EPC contractor / O&M provider and
sub-contractors. The HR policy and procedures will stipulate that the terms of
employment, such as wages and benefits, hours of work, overtime arrangements
and overtime compensation, annual and sick leave, maternity and paternity
leave, vacation and holiday, are established according to national labor
regulations, and will be included in employee contracts. Additional workers’
benefits for full-time operations staff will include health insurance and
medical assistance, among others. Working conditions (including health, safety
and security), employee termination, prohibition to employ minors, disciplinary
actions, workers’ rights and obligations, employer’s rights and obligations
will also referenced.

As also indicated in ESAP Action Item #5, Arabia One will ensure that the Human
Resource Policy and Procedures as developed by the EPC contractor / O&M
provider are consistent with their own Human Resources related documents.

In line with Performance Standard 2, the developer’s Human Resources Policy
will not impede workers from freedom of association and collective bargaining.
Although Jordan is not a signatory to the ILO Convention 87 on Freedom of
Association and Protection of the Right to Organize, workers will be able to
organize among themselves and will not be discriminated against for doing so,
as will be specified in the Human Resources Policy and Procedures.

The developer is committed to avoid all forms of discrimination against its
employees, based on the age, gender, sexual orientation, health, race,
nationality, political opinions or religious beliefs of its counterparties.
The requirements of non-discrimination and equal opportunities will be extended
to all contractors and subcontractors as part of contractual obligations.

The developer’s Human Resources Policy will exclude the use of any form of
forced or compulsory labor, in accordance with national law and IFC PS 2.

As indicated in Action Item #6, training for direct and indirect workers will
be covered in the developer’s HR procedures. Induction training on the Human
Resources Policy and Procedures and basic safety awareness training will be
provided to all newly hired workers. Other types of technical skills training
will be identified for staff on an as-need basis.

As indicated in ESAP Action Item #7, the project will develop and make
available a grievance mechanism for workers. The developer will inform the
workers of the grievance mechanism, through the EPC contractor / O&M provider
and otherwise, and describe how to make use of it during the induction
training. The grievance mechanism will also be accessible to other contractors
and subcontractors performing work in core business processes of the project.

Occupational Health and Safety

Key occupational, health and safety (OHS) risks for a PV project include slips
and falls, potential hazards from on-site moving machinery, heavy load lifting,
exposure to electric shocks and burns. Taking into account the hot and arid
project site, construction workers might be at risk of dehydration, heat
exhaustion and heat stroke if not hydrated properly.

The developer has identified OHS issues in their OHS Policy for the EPC
Contractor (Hanwha). As identified in ESAP Action Item #8, Arabia One will
ensure that the EPC contractor / O&M provider develop a site-specific OHS
Procedure for the construction and operations phases of the project. The
procedure will be designed to be specific to the PV solar sector (in terms of
industry specific hazards) and the project site.

The developer will also ensure that the EPC contractor / O&M provider assesses
and tracks its OHS performance during both construction and operations. OHS
performance evaluations will be carried out for employees considering lagging
(or trailing / downstream) indicators and leading (or upstream) indicators.
The E&S focal point will record and track any OHS incidents through an incident
tracker and will report on OHS performance during both construction and
operation phase.

Given that the project involves PV, which requires considerably less water than
other technologies (e.g., Concentrated Solar Power - CSP). The current plan
is to transport water to the site via a water truck three times a day during
construction and store in three on-site water tanks. Water usage during
construction is currently estimated at 10 tons per day. Water-based PV module
cleaning is also projected to take place during operations. The project
estimates that approximately 37 tons of water will be used per each cleaning
event, which take place up to once per month (varies per season), totaling 444
tons of water per year. Water would be sourced via the solar park’s internal
water pipeline supplied by MDC, and/or b) from nearby water sources. Final
plans for the solar park’s internal water pipeline are still being finalized as
this requires the input and decision of all developers, which is yet to be
provided. Given the high projected usage of water on-site and the arid nature
of the local climate, the project will develop a Water Management Plan, which
includes an assessment and review of alternative cleaning methods, including
the use of dry cleaning, as included in ESAP Action #9. The plan will provide
a justification for the extent of water usage on the site considering both
environmental and economic factors.

Wastewater will be collected by septic tanks and emptied regularly based on the
water consumption on the site. This will then be transported to Ma’an
WasteWater Treatment Plant.

The EPC contractor has a comprehensive waste management procedure in place.
During the construction phase, the EPC contractor will be responsible for solid
and domestic waste collection, and disposal to an approved landfill facility
(Ma’an Central Landfill). Both solid and hazardous waste generated by the
projects during construction and operations will be minimal. Solid (paper,
wood, plastic, scrap metals, glass, mud and food waste) and hazardous
(absorbent material, batteries, tires, metal drums, empty chemical containers
and waste oil from machinery lubricants) waste streams will be segregated and
volumes recorded. Overarching waste management measures will also be included
in the ESMP. . Hazardous waste will be collected by a licensed third party and
disposed of in a Hazardous Waste Treatment Center (designated by the
municipality of Ma’an). Hazardous materials will be stored in a dedicated
area; a register will be maintained and Material Safety Data Sheets displayed.

In terms of carbon dioxide emissions, the project overall will avoid emissions
that would be otherwise produced in case fossil fuels were used for power
generation. Assuming a total kilowatt-peak (kWp) power of 11,523.96 kWp in
Ma’an for this 10 MW project, it is that an equivalent of 14,000 tons carbon
dioxide-equivalent (CO2eq) of greenhouse gas emissions offset by the project.
The PPA agreement specifies that NEPCO will apply, register and benefit from
carbon credits.

The PV module used for the project is certified under the new internationally
recognized carbon emission lifecycle quantification standard, ISO 14067. The
EPC contractor is a member of PV cycle and is able to recycle decommissioned PV
cells. However, this recycling process is only eligible for the PV cells used
in the European area. Currently, since EPC contractor doesn’t have an internal
policy to collect decommissioned PV cells, the PV cells used in Jordan at
Arabia One to be decommissioned will be handled by waste disposal procedure and
regulation of Jordan. The EPC contractor will research the possibility of
having the PV cells go to PV cycle during decommissioning.

A licensed private security company will be hired by the project to manage
security and the MDA will have its own security arrangements including a
perimeter fence, controlled access, and possibly checkpoints. The licensed
security provider will supply guards trained in the use of weapons and
appropriate use of force. Given the potentially volatile security situation in
the region, and recent protests in Ma’an, the company will ensure that key
elements of PS 4 are implemented, as follows: when the company retains a
security provider to safeguard its personnel and property, it will assess risks
posed by its security arrangements to those within and outside the project
site, including the residents of the nearest towns. In making such
arrangements, the client will be guided by the principles of proportionality
and good international practice in relation to hiring, rules of conduct,
training, equipping, and monitoring of such workers, and by applicable law.
Arabia One will make reasonable inquiries to ensure that those providing
security are not implicated in past abuses; will train them adequately in the
use of force (and where applicable, firearms), and appropriate conduct toward
workers and nearby communities; and require them to act within the applicable
law. The company will not sanction any use of force except when used for
preventive and defensive purposes in proportion to the nature and extent of the
threat. The company will provide a grievance mechanism for nearby communities
to express concerns about the security arrangements and acts of security
personnel. These safeguards will be captured in a Security Management Plan for
the construction and operations phases of the project (i.e. covering the EPC
contractor and O&M contractors’ security operations), including a training
module, as captured in ESAP Action Item #10.

No directly affected communities have been identified for this project, due to the distance of the site from the nearest settlement (circa 8 km). The developer conducted a scoping session (as part of the ESIA) on 16 June 2014 with relevant stakeholders, including the General Manager of the MDA, Ma’an Chamber of Commerce, and representatives from the university. MDA is working with the municipality to follow the Jordan mandate for socioeconomic development. Civil society and academia, Ma’an governorate advisory council give attention to the solar park development; the deputy governor has attended all the scoping sessions.

The Scoping Report and the Terms of Reference for the ESIA were submitted to the Ministry of Environment for approval on 19 June 2014 (approval pending). As mentioned above in this document, the Draft ESIA is pending completion by end-July 2014. The Draft ESIA, , its non-technical summary (NTS) document and the SEP will be disclosed to stakeholders on the developer’s website (and other means – see below) for a period of 30-days for comments. The NTS, accompanied by a letter describing where the full ESIA could be accessed, will be sent to each of the stakeholders identified in the stakeholder identification and analysis exercise. Comments will be reviewed and considered by the ESIA consultant and included in the final ESIA, which will be disclosed on the developer’s website.

The developer has taken initiatives where they brought the various solar companies in the solar park together to collectively decide on the approach to serve the nearest communities (primarily the city of Ma’an, 8 km away) on a wider scale. Direct and indirect benefits could cater for commercial needs and training of the existing Ma’an community. Each developer has agreed to contribute to a corporate social responsibility (CSR) fund and work with community representatives as mentioned above to strengthen outreach to the community through offering public services that emerge from need assessments.

Arabia One plans to develop a CSR program and will use best efforts to align initiatives with neighboring PV solar companies in the Ma’an Development Area. The CSR program will be used a as a means to engage with the communities. CSR efforts will include vocational training through the existing training facility as well as other topics directly relevant to community interests. At the time of the IFC team visit, a meeting was conducted between the sponsor and the governor in Ma’an to find means to assess the community needs as an initial step. Arabia One aims to work closely with members of the local community, including the municipality, vocational training centers and schools and universities with the aim to deliver as much education and awareness from the operating plant as possible. Arabia One will aim to make the plant available for site visit purposes, awareness-raising purposes and educational purposes, when and where available. Arabia One, Hanwha and MASE will work closely with Eco Consult to cement its social-economic targets.

As identified in ESAP Action Item #11, the developer will use best efforts to develop a joint Stakeholder Engagement Plan (SEP) in coordination with neighboring companies, as feasible; in the absence of a collective SEP, the company will develop one for its own operations in compliance with PS1. The SEP will include a stakeholder identification and analysis. It will also include the development of a grievance mechanism in collaboration with neighboring companies and the MDC, as feasible; in the absence of a collective grievance mechanism, the company will develop a grievance mechanism, in compliance with PS1, for its own operations.

Some companies in the MDC are working closely with the Energy, Water and Environment Association (EDAMA), which is the local industry association that seeks sustainable solutions for energy and water independence and productivity. EDAMA is chairing the Ma’an vocational training center and is organizing the opening and job fairs. Academic engagement is the starting point due to the presence of the university in close proximity to the development area. The review of curricula to bring RE technologies into focus is being discussed. The developer will use best efforts to participate in these initiatives with other developers through EDAMA and MDC.

For additional information please contact:

Name: Tareq Khalifeh
Title: Project Development Director
Company: Arabia Trading & Consulting
Address: 260 Arar Street, Amman, Jordan
Mail to: mailto:tareq.khalifeh@atc.jo
Website: http://www.atc.jo

Broad Community Support is not applicable for this project

Arabia One Solar(35474) Supervision Disclosure Snapshot – Version 3
Description	Anticipated Completion Date	Status	Comments	Completion Date
Arabia One will develop an environmental and social management system (ESMS) that will consist of an Environmental and Social (E&S) Policy and Health and Safety (H&S) Policy, an Environmental and Social Management Plan (ESMP) with monitoring actions, an overarching system for reporting and tracking non-compliances, and an organizational framework.	01-Nov-2014	Completed	Completed	1/26/2015
Arabia One will conduct a review on the use of the project area by semi-nomadic Bedouin communities for grazing and any potential related impacts. Mitigation measures will be developed, as necessary.	01-Nov-2014	Completed	Completed	5/11/2015
Arabia One will develop a project-specific Environmental and Social Management Plans (ESMP) for the construction and operation phases that include monitoring actions, frequency of monitoring, performance indicators and the responsible entity; and will ensure that the EPC contractor / O&M provider personnel are adequately trained to undertake E&S-related activities.	01-Nov-2014	Completed	Completed	1/26/2015
Arabia One will ensure that there is an on-site environmental and social (E&S) focal point during construction, and support staff, included a community liaison officer, as needed; and, one E&S focal point during operation based off-site.	01-Nov-2014	Completed	Completed	2/8/2015
Arabia One will develop a Human Resources Policy and Procedures in line with IFC’s Performance Standard 2 and with Jordanian labor laws and will ensure that the Human Resource Policy and Procedures as developed by EPC contractor / O&M provider are consistent with commitments made in their own Human Resources related documents.	01-Nov-2014	Completed	Completed	7/23/2015
The Client will ensure that basic training on Human Resource policies and procedures are provided as part of induction and will ensure that the EPC contractor / O&M provider provides an overarching E&S training to all employees and contractors.	01-Nov-2014	Completed	Completed	7/23/2015
Arabia One will develop and make available a grievance mechanism for workers.	01-Nov-2014	Completed	Completed	7/23/2015
Arabia One will ensure that a site-specific Occupational Health and Safety (OHS) Procedure is developed for the construction and operations phases of the project.	01-Nov-2014	Completed	Completed	1/26/2015
Arabia One will develop a Water Management Plan, which includes an assessment and review of alternative cleaning methods, including the use of dry brush cleaning. The plan will provide a justification for the extent of water usage on the site considering both environmental and economic factors.	01-Nov-2014	Completed	Completed	1/26/2015
Arabia One will develop a Security Management Plan (SMP), including a training module for security staff, that aligns with the requirements of Performance Standard 4.	01-Nov-2014	Completed	Completed	10/4/2017
Arabia One will use best efforts to develop a joint Stakeholder Engagement Plan (SEP) and collective community grievance mechanism, in coordination with neighboring companies, as feasible; in the absence of a collective SEP and grievance mechanism, The Client will develop both for its own operations in compliance with PS1. The SEP will also include a stakeholder identification and analysis	31-Jan-2015	Completed	Completed	11/30/2017