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
PS 8 – Cultural Heritage
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.

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



Falcon is in the process of developing an overarching E&S Policy and an H&S Policy that will apply to the project, as included in ESAP Action Item number (#) 1. The policies will be specific to the 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 developer’s Environmental and Social Management System (ESMS) will consist of these policies; an Environmental and Social Management Plan (ESMP), which includes monitoring actions; an overarching system for reporting and tracking non-compliances in a coordinated manner, project-wide; and, an organizational framework.



Environmental and Social Assessment



The draft ESIA was prepared by a local consulting company (Arabtech Jardaneh) according to the requirements of the Jordanian Environmental protection law no. 52 / 2006 for the project. The draft ESIA includes a scoping session held with the stakeholders and was designed to meet international standards. The draft ESIA includes a review of applicable legislation and standards with potential implications to the project; a description of the activities that will need to be performed over the life of the project; and identification of risks and impacts (including positive impacts). The draft ESIA also includes an E&S baseline study (covering, for example, air / noise quality, biodiversity, cultural heritage, etc.) against which impacts of the project can be assessed. An alternatives assessment was also carried out. Stakeholders were identified prior to the scoping sessions and methods of communication were explored. Mitigation and monitoring measures were also identified and included in the ESMP, which is annexed to the draft ESIA..



Regarding social-related impacts, based on IFC''s site visit and discussions with E&S specialists in Jordan, the use of the project area for grazing by semi-nomadic Bedouin communities is unlikely. Nonetheless, the company will strengthen the social-components of the draft ESIA and conduct a review to confirm that adverse social impacts are not incurred by local populations, including project-related impacts related to collective grazing as identified in ESAP Action Item #2. Mitigation measures will be determined, as necessary.



In addition to the draft ESIA done for each specific project in MDA, the Ma’an Development Company commissioned a consultant (Bitar Consultants) to conducts a Rapid Environment Assessment (REA) for the entire Ma’an Development Area (MDA).The REA included stakeholder engagement and consultation, provided comprehensive performance requirements to ensure environmental protection and a road map for environmental permitting for any project planned in the MDA. It also provided recommended mitigation measures for any potential impacts to occur during the preparation, construction, operation and decommissioning phases for the entire MDA. The draft
ESIA was prepared in alignment with this overall assessment



Management Program



The draft ESIA contains an ESMP for the construction and the operations phases of the project. Management actions include solid waste management, soil management, dust control, wastewater disposal, occupational H&S, amongst other topics. The ESMP includes monitoring actions, frequency of monitoring, performance indicators and the responsible entity.



The EPC contractor / O&M provider will ensure that staff understands all requirements, measures, and protocols stipulated within the ESMP. They will also ensure that all E&S personnel are competent to carry out their duties, or, where necessary, arrange for suitable training to be undertaken.



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 # 3. 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 are 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.

The developer will employ 50 to 70workers during construction and 3 to 5workers during operations. Falcon will develop a local hiring plan to encourage recruitment from Ma’an city and will use best efforts to coordinate local hiring efforts with neighboring PV developers in the MDA.



As identified in ESAP Action Item #4, Falcon 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 #4, Falcon 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.



Jordan is a signatory to numerous international conventions and treaties. Examples relevant to labor rights include ILO Convention 98 on the Right to Organize and Collective Bargaining Convention; ILO Convention 100 on Equal Remuneration; ILO Convention 111 on Discrimination (Employment and Occupation).



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 #5, 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 #6, 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 related to construction activities in the ESIA. As identified in ESAP Action Item #7, the developer 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 rather than Concentrated Solar Power (CSP) technology, water consumption will be minimal. Water will be used to rinse solar panels to remove any accumulation. The expected frequency is twice or three times a year. There will be two underground water tanks for cleaning water storage of 500,000 liters capacity to be constructed. Submersible pumps will draw water from bore wells and pumps will distribute water to through pipes and hoses. Water will also be provided to the project through MDC (through firefighting network).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 Waste Water Treatment Plant.



During the construction phase, the EPC contractor will be responsible for solid and domestic waste collection and disposal to an approved landfill facility. 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. This will be in accordance to requirements laid out in the ESMP for waste management procedures to be developed by the Client. 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 an energy yield of about 1950 kilowatt-hour over kilowatt-peak (kWh/kWp) in Ma’an, this 21 MW project is expected to provide 40,950,000 kwh annually. This translates to an equivalent of 26,100 tons carbon dioxide-equivalent (CO2eq) of greenhouse gas emissions offset by the project, not accounting for the direct and indirect GHG emissions resulting during the project’s life.



During decommissioning, the developer is considering joining a PV recycling program. The draft ESIA covered the alternatives for this project such as importing fuel which incurs additional greenhouse gas emissions and is costly given the current shortage in the region. The PPA agreement specifies that NEPCO will apply, register and benefit from carbon credits.

The MDC is the major developer of the entire plot of area of the MDA. Under the MDC, there is a neighboring Industrial Park located around 2.5 km to the north-east of the project area. There is also a private farm located to the north-west which is also 5 km away of the project area. Under MDC there is a private university, Al-Hussein Bin Talal University, a partner in MDA with its campus located in Ma’an City, and a Skills Development Center for vocational training of skills for technicians and laborers from the local community to be later employed by the Developers of MDA Solar Park. There is a residential community in Ma’an city approximately 8 km away from the project site. While there are no neighboring communities to the MDA Solar Park to be impacted by this project, there are nomadic Bedouins that may graze through the area on occasion.



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. Falcon Scoping Study indicates that the contribution of the Jordanian Armed Forces in all new projects and the security of the MDA area to be part of their responsibility since it is a strategic project for Jordan. There will be coordination between the Ministry of interior and Jordanian Armed Forces for these projects. 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 developer retains a security provider to safeguard its personnel and property, and in interactions with Government forces, it will assess risks posed by its own, and Government, security arrangements to those within and outside the project site, including the residents of the nearest towns. In making such arrangements, the developer 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. Falcon 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. Falcon will also seek to ensure that Government security personnel act in a manner consistent with these principles, on a best-efforts basis. The developer 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. These safeguards will be captured in a Security Management Plan that includes a training module for security staff, as included in ESAP Action Item #8.



The project w
ill adopt the preventive security approach through building positive relations with the local community and other stakeholders via open dialogue channels via the community liaison persons who may be from the local community members. Liaising with external stakeholders, especially local community is one of the management actions that will be executed during the project life. The developer will provide a grievance mechanism for nearby communities to express concerns about the security arrangements and acts of security personnel, as included in ESAP Action Item #9.

An archaeological survey was conducted by the Ministry of Tourism and Antiquities – Department of Antiquities on 24/12/2013 at the proposed area for the solar power projects in MDA and was found that at three distinct locations there contains archeological artifacts from the Ottoman era (remains of an Ottoman camp site). One of these locations falls within the Falcon Ma’an Solar Power project site. The other two locations identified throughout the survey are located outside the boundaries of the project site. The archaeological survey recommended that 1) the Ottoman camp should be fenced without restriction of the project implementation, and 2) the project developer is obliged to inform the Ministry of Tourism and Antiquities – Directorate of Ma’an in the case of more findings are observed during the construction phase. This is clearly outlined in the ESMP in the form of a Chance Finds Protocol.



If further cultural heritage is identified during construction activities, the EPC contractor will notify the supervisor of the Cultural Resources Management Office of the Department of Antiquities. If cultural heritage may potentially be damaged due to project activities, the Department of Antiquities will assess the discovered remains and may carry out an emergency salvage excavation (i.e. archaeological excavation conducted during the construction phase, which should be conducted only when an archaeological site is accidently found(chance find).

Meetings with the General Manager of the MDA, Ma’an Chamber of Commerce, and the university were held as part of the stakeholder engagement initiatives undertaken by the developer as part of the scoping session in the developing of the ESIA. 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 May 28th 2014, and was then approved by the Ministry on June 12th 2014. The Draft ESIA was submitted to Falcon Ma’an for review on June 25, 2014, and is planned to be submitted officially to the Ministry of Environment in early 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 community 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.

Falcon 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.

As identified in ESAP Action Item #9, 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.

Falcon Ma’an Solar Power (SaquerMa’anLal-Taka Al-Shamsia LLC)
Mr Ennis Rimawi
Managing Director, Catalyst Private Equity
Chairman, Millennium Energy Industries
Office: +962 6 592-1747
Fax: +962 6 592-1773
Jordan Mobile: +962 7777 50 680
UAE Mobile: +971 50 883 1943
Address: Princess Bassma Street, building 2, Abdoun, Amman - Jordan.
Email mailto:ennisr@catalystpe.com

Broad Community Support is not applicable for this project

S.no	Description	Anticipated Completion Date	Status
1	Falcon Ma’an will develop its own Environmental and Social (E&S) and Health and Safety (H&S) policy that is relevant to business activities in Jordan.	11/01/2014	Completed
2	Falcon Ma’an 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.	11/01/2014	Completed
3	Falcon Ma’an 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.	11/01/2014	Completed
4	Falcon Ma’an 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.	11/01/2014	Completed
5	Falcon Ma’an 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.	11/01/2014	Completed
6	Falcon Ma’an will develop and make available a grievance mechanism for workers.	11/01/2014	Completed
7	Falcon Ma’an will ensure that a site-specific Occupational Health and Safety (OHS) Procedure is developed for the construction and operations phases of the project.	11/01/2014	Completed
8	Falcon Ma’an will develop a Security Management Plan (SMP), including a training module for security staff, that aligns with the requirements of Performance Standard 4.	11/01/2014	Completed
9	Falcon Ma’an 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, Falcon Ma’an will develop both for its own operations in compliance with PS1. The SEP will also include a stakeholder identification and analysis	01/31/2015	Completed