36722 - Phoenix Tower BR

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Environmental & Social Review Summary

Project Number

36722

Company Name

PHOENIX TOWERS PARTICIPACOES S.A.

Date ESRS Disclosed

Feb 5, 2016

Country

Brazil

Region

Latin America and the Caribbean

Last Updated Date

Jun 12, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : May 25, 2016
Signed : Jun 20, 2016
Invested : Jul 21, 2016

Sector

Other (Including Satellite Telecommunications, Radio and Television Broadcasting, etc.)

Industry

Telecommunications and Technology

Department

TMT, Venture Capital & Funds

Project Description

This project involves proposed lending by IFC of up to $20 million to Phoenix Tower do Brasil (“PTB” or the “company”) to finance the construction of wireless telecommunications towers in Brazil. In 2015, PTB added to its own assets by acquiring more than 500 towers in 2015 from T4U Holding Brasil, S.A. (“T4U”). PTB is in the process of consolidating that acquisition, and projects that it will construct another 200 towers in 2016 for all of the major wireless operators in Brazil.

Overview of IFC's Scope of Review

The review of IFC’s proposed investment in PTB included a visit by IFC staff to PTB offices in Sao Paulo, Brazil in August 2015 to meet with and interview management of PTB, and to visit select tower sites. IFC staff also appraised environmental and social (“E&S”) and technical information submitted by PTB, including lists of sites, workers, contractors, and suppliers, and a collective bargaining agreement.

IFC’s appraisal for the proposed investment considered E&S management policies and procedures proposed for PTB, and gaps between them and IFC requirements. Corrective measures intended to close those gaps, within a reasonable period of time, are summarized in the paragraphs that follow and in the Environmental and Social Action Plan (ESAP) disclosed with this review summary. Through implementation of those measures, the project is expected to be designed and operated in accordance with Performance Standard objectives.

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
PS4, PS5, PS6, PS7 and PS8 are not considered applicable given that sites are all expected to have a very small footprint; sites are expected to be leased, and any purchased ones are expected to involve a willing seller; no operations are expected to require biodiversity conservation or any substantial management of living natural resources; no Indigenous Peoples are expected to be affected; and no important cultural heritage is expected to be impacted (although PTB will develop - and implement as necessary - a Chance Find Procedure to cover unexpected finds during new site construction).

The key E&S issues associated with the project are in E&S screening of acquired assets; the impacts of tower construction; labor and working conditions (including employee and contractor occupational health and safety); and pollution prevention and abatement.

As E&S risks and impacts are expected to be limited, site-specific, and relatively few in number, 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 E&S Review of Projects.

Environmental and Social Mitigation Measures

Environmental and Social Assessment and Management System

PTB has nominated a qualified officer to be the E&S coordinator for PTB, with responsibilities that include implementing the company’s current version of E&S policies and procedures.

Under IFC’s investment, PTB will revise its existing E&S policies and procedures, ensuring that the new version is consistent with IFC’s Performance Standards and relevant World Bank Group Environmental, Health and Safety (EHS) Guidelines. PTB will then make the new version available to PTB workers in Brazil (as is the existing version).

PTB’s revised E&S policies and procedures will cover the following key E&S issues: (a) screening of new sites and managing their impacts, including through energy efficiency, fuel management, and stakeholder engagement; (b) supply chain and contractor management, including monitoring of occupational health and safety; and (c) waste management and disposal, especially with respect to generator sets and battery acids. PTB will not use armed security guards at any of its sites.

The screening of new sites will especially take into account the community health and safety risks and impacts due to construction, visual impacts, noise from generators, electromagnetic fields (EMF), and structural safety. The required mitigation measures may include camouflaging towers and fixtures, providing sound barriers where noise levels exceed prescribed limits, monitoring EMF, and undertaking structural stability tests on a periodic basis.

PTB will initially map potential sites according to transmission needs, and consider the best potential sites in each searched area. PTB will then perform E&S review of those potential sites according to PTB’s E&S policies and procedures, as part of PTB’s overall due diligence. This E&S review will be commensurate with the level of social and environmental risks and impacts in the relevant operations. PTB will not develop any proposed new facility that cannot be expected to comply with applicable standards.

PTB will supervise the ongoing E&S risks and impacts in all of the company’s operations for the duration of its involvement. For this purpose, PTB will develop specific monitoring and review procedures to supervise the E&S risks and impacts of its operations.

PTB’s monitoring and review procedures will include: (a) on-site review of sites under development to ensure compliance with PTB’s policies and procedures; (b)regular reporting to the management as part of the company’s management information system; and (c) regular reporting from all sites on a set of pre-defined key performance indicators including, for example, the number of staff trained with respect to PTB’s E&S policies and procedures, compliance indicators for PTB’s supply chain, and the frequency rate of lost time injuries, fatalities, and other incidents.

Stakeholder Engagement

Stakeholder Engagement Plan

PTB recognizes the importance of stakeholder engagement, and will comply with IFC Performance Standard 1 on disclosure and stakeholder engagement. PTB will implement procedures for prior disclosure of any new PTB site to local communities by posting notices at sites at least three days prior to the start of construction.

PTB will comply with all applicable requirements for community consultation, and will address any grievances expressed by local community members, consistent with IFC PS 1 requirements. PTB will take continuous measures to avoid or reduce any complaints or concerns from local community members regarding noise, security, illumination, housekeeping, and access roads, and will arrange meetings with such communities as necessary to discuss complaints and proposed mitigation measures.

Broad Community Support

Environmental & Social Action Plan

Title	Anticipated completion Date
Provision of policies and procedures satisfactory to IFC on all of the following (and on other issues described in the ESRS for this project) will be developed as needed, to be made available in Portuguese to all relevant PTB workers, consistent with IFC Performance Standards and IFC Telecommunications Guidelines: (a) policies and procedures for E&S review to be performed as soon as possible after acquisition of any existing sites/facilities, and before development of any new sites/facilities, commensurate with the nature of each site or facility, and the level of E&S risks and impacts at each site/facility; (b) policies and procedures for the management of core contractors; (c) specifications and a timetable for pollution prevention and abatement measures, including construction of secondary containment around all PTB’s fuel tanks, with secondary containment to provide at least 110% of the capacity of the tanks (n.b., this can be provided via either a berm or a double hull/skin around each tank or any other solution meeting the IFC acceptance); (d) policies and procedures for public disclosure via signage or similar method at each relevant PTB site at least 3 days prior to construction at all such sites; and (e) any other policies/procedures needed for compliance with IFC Performance Standards.	04/29/2016
PS2: Provision of policies and procedures satisfactory to IFC on all of the following (and on other issues described in the ESRS for this project) will developed as needed, to be made available in Portuguese to all relevant PTB workers, consistent with IFC Performance Standards: (a) policies and procedures on life and fire safety; (b) a limit on hours worked per week; (c) a mechanism for handling worker grievances with a channel for appeal of initial decisions; (d) policies and procedures on non-discrimination in recruitment and during employment; (e) provision of personal protective equipment; (f) coverage of employees of contractors and subcontractors; and (g) any other policies/procedures needed for compliance with IFC Performance Standards.	04/29/2016

Title

Anticipated completion Date

Provision of policies and procedures satisfactory to IFC on all of the following (and on other issues described in the ESRS for this project) will be developed as needed, to be made available in Portuguese to all relevant PTB workers, consistent with IFC Performance Standards and IFC Telecommunications Guidelines: (a) policies and procedures for E&S review to be performed as soon as possible after acquisition of any existing sites/facilities, and before development of any new sites/facilities, commensurate with the nature of each site or facility, and the level of E&S risks and impacts at each site/facility; (b) policies and procedures for the management of core contractors; (c) specifications and a timetable for pollution prevention and abatement measures, including construction of secondary containment around all PTB’s fuel tanks, with secondary containment to provide at least 110% of the capacity of the tanks (n.b., this can be provided via either a berm or a double hull/skin around each tank or any other solution meeting the IFC acceptance); (d) policies and procedures for public disclosure via signage or similar method at each relevant PTB site at least 3 days prior to construction at all such sites; and (e) any other policies/procedures needed for compliance with IFC Performance Standards.

04/29/2016

PS2: Provision of policies and procedures satisfactory to IFC on all of the following (and on other issues described in the ESRS for this project) will developed as needed, to be made available in Portuguese to all relevant PTB workers, consistent with IFC Performance Standards: (a) policies and procedures on life and fire safety; (b) a limit on hours worked per week; (c) a mechanism for handling worker grievances with a channel for appeal of initial decisions; (d) policies and procedures on non-discrimination in recruitment and during employment; (e) provision of personal protective equipment; (f) coverage of employees of contractors and subcontractors; and (g) any other policies/procedures needed for compliance with IFC Performance Standards.

04/29/2016

**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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