PS5 Land Acquisition and Involuntary Resettlement: All land required for the project was purchased or rented through voluntary transactions between the sponsor and private landowners. The sponsor could not resort to expropriation if negotiations with sellers failed; therefore this PS is not applicable. No one is expected to be physically displaced, however the lenders have asked for additional information about the possibility of economic displacement among a group of stakeholders known as “medieros” (sharecroppers) who obtain a landowners permission to plant corn or other annual crops in return for a share of the harvest. Preliminary investigations confirmed that livelihood impacts on medieros are unlikely to be significant. This is due to the low productivity of land, the fact that farming is not their main source of income, and the availability of other comparable lands in the vicinity. As part of the ESAP (PS1 - Action #1) the sponsor has agreed to conduct an additional assessment of these project-related livelihood impacts. If this assessment identifies any significant economic displacement, the sponsor, in consultation with affected people, will identify mitigation measures to meet the objectives of PS5.     

PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources: The project site is modified habitat containing limited biodiversity values. The site has been extensively and historically used for agriculture and pasture, and is not located in or near any protected area. According to the EIAs, the vegetation in the project area consists of secondary vegetation where herbaceous and medium shrubby species are dominant, including cacti. None of these species are endemic to the region or protected under national regulations. Overall, all species reported in the ESIA are broadly distributed and no major threats to such taxa were identified. Flora will be rescued and transplanted during site preparation and reforestation using native species will be done to offset forest vegetation removal in Solem I (Alten 5) in Alten 1 polygon.  The other polygons do not require forest vegetation removal. There are 10 fauna species listed under some level of protection by Mexican NOM-059-SEMARNAT-2010 that are known to occur in the region, but where not observed at the site or expected to be impacted by the Project.  All are listed as Least Concern under the IUCN Red List and have a wide regional distribution. Three water bodies or ‘bados’ within the Project site were determined by the National Water Commission (“CONAGUA”) to be natural. Thesebados were used by the landowners as water reservoirs for irrigation and cattle.  Landowners will no longer use the site given that their land will be sold or leased and no other water users for those bados exist.  In addition, the footprint of the solar panels was adjusted to avoid the area of all three bados, leaving them in their natural condition. 

PS 7: Indigenous Peoples: According to information from the National Commission for the Development of Indigenous Peoples (CDI), there are no Indigenous Peoples or territories present in the projects’ area of influence. Absence of IPs was also noted in the ESIA and evident to the IFC team during the site visit.

PS 8. Cultural Heritage: The EIAs found no evidence of cultural heritage at the project site. As required in the ESIA the sponsor will development and implement a Chance Finds procedure to be applied in the event that cultural heritage is subsequently discovered during construction.

The project environmental category is "B" - limited potential for causing adverse environmental and social (E&S) impacts. During construction, key environmental and social risks and impacts include air quality and noise that may disturb surrounding residents, occupational health and safety (OHS), community safety, vegetation removal and waste management. During operations, the main risks and impacts are related to water use and availability. Main positive impacts include employment opportunities, electricity production, and reduction of greenhouse gases (GHG).

IFC’s appraisal considered the environmental and social management planning process and documentation for the Project and gaps, if any, between these and IFC’s 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 implementation of these measures, the Project is expected to be designed and operated in accordance with Performance Standards objectives.

Environmental and Social Assessment and Management System (ESMS): The sponsor has an Environmental and Social Management System (ESMS) consisting of relevant E&S policies, programs and procedures. Several of these programs –for example those concerning occupational health and safety, reforestation, contractor supervision, water management and stakeholder engagement – were developed at different times and by different contractors with varying degrees of detail. The sponsor will consolidate and update the ESMS to ensure greater consistency with IFC Performance Standards (PS) (ESAP #1).

Policy: The sponsor’s E&S policy is broadly consistent with IFC’s Sustainability Policy. Commitments are made to identify and address E&S impacts and risks, allocate sufficient resources for achieving the policy objectives, implement an emergency preparedness and response system, as well as for communicating these objectives to relevant stakeholders. Current policy statements will be harmonized and made more consistent with good international industry practice as part of the sponsor’s efforts to update their ESMS.     

Identification of Risks and Impacts: Originally, this project was not conceived as a single power plant, but rather as six adjoining solar concessions which the sponsors acquired. Therefore, several stand-alone Environmental and Social Impact Assessments (ESIAs) were prepared, covering the different components and concessions.  These ESIAs assessed the associated electrical transmission line and substations to be built on project controlled land. According to these studies, anticipated impacts during project preparation and construction are essentially the same for all components and include deterioration of air quality, increased noise and vibration, vegetation removal, increased risks of traffic accidents, Occupational Health and Safety (OHS), and the influx of workers and job-seekers. During the operation phase, negative impacts will include: minor noise and vibrations nuances caused by maintenance, limited potential impacts on groundwater due to panel cleaning operations, and traffic safety. Positive impacts during both phases of the project include employment opportunities, public infrastructures and services, electricity production, development of new businesses, and reduction of GHG emissions. Cumulative impacts were not identified.

Management Programs: The sponsor has developed a range of management programs to address the E&S risks and impacts identified during the ESIA process. These programs establish detailed procedures and responsibilities for everything from recruitment and compensation to occupational safety, waste management, emergency preparedness, performance evaluation and social responsibility. The EPC contractor is contractually required to comply with these programs. As noted above, the sponsor will revise and adapt current management programs to the project circumstances as part of efforts to update the ESMS.   

Organizational Capacity and Competency: The sponsors are currently recruiting an Environmental Health and Safety (EHS) and Community Liaison Manager. This position will be supported by the EPC Contractor’s own EHS and Community Liaison Officers. This Manager will help develop and implement the ESMS and work with the EPC Contractor’s EHS Officer to ensure all sub-contractors comply with EHS requirements defined ESIA and management programs. On the community liaison side, this Manager will coordinate and supervise interactions with local communities and ensure that all social related management programs are fully implemented. This position will be supported by the EPC Contractor’s Community Liaison Officer who will be responsible to coordinate and facilitate local employment, build rapport with the communities, and implement the communication program.

Emergency Preparedness and Response: The sponsor has developed a Civil Protection and Evacuation Plan that identifies potential safety and security risks and describes the processes to follow in case of an emergency. It takes into account potential contingency situations – such as fire and traffic incidents) that could affect project personnel or facilities, including visitors and neighbors. The sponsor will revise and adapt current emergency programs to the project circumstances as part of their efforts to update their ESMS.  

Monitoring and Review: The sponsor has a number of Key Performance Indicators (KPI) related to its activities in order to be able to report on E&S performance: a) Safety – Lost Time Injury Frequency Rate, Accident Free Days; b) Resource Efficiency – Water Usage, Energy Usage; c) Staff - Retention and training days. The sponsor will report annually to IFC and other lenders and will provide feedback to affected communities on at least an annual basis in relation to any impacts affecting them and associated mitigation measures. The sponsor will revise and adapt current Contractor Supervision Procedures to the project circumstances as part of their efforts to update their ESMS.