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 5 – Land Acquisition and Involuntary Resettlement
If IFC’s investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards
PS6 – Biodiversity Conservation and Sustainable Management of Living Natural Resources, is not considered relevant for this project as the site is considered a modified habitat; the area has been modified through agricultural use and other human activities and there are no protected or recognized areas within close proximity to the project site and no threatened species, flora or fauna, were identified in the project area. PS7 - Indigenous Peoples and PS8 - Cultural Heritage have also not been identified as relevant to this project as there are no known groups of indigenous persons in the project area and no items of cultural heritage were suspected or identified in the project area.

This is a Category A project according to IFC’s Policy on Environmental and Social Sustainability. The environmental and social risks and impacts associated with this project are considered significant and irreversible, in particular the significant adverse social impacts of the project due to economic displacement affecting 208 households (1,283 persons).

The main environmental, social, occupational health and safety risks identified for this project relate to the management of air emissions and solid and liquid wastes; the capacity of both EPC and O&M contractors to manage their social, environmental and safety performance and engage with project stakeholders; assurance of fair, safe and healthy working conditions for all workers during construction and operations; management of land acquisition, compensation and economic displacement; and management of community health and safety.

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.

IFC’s assessment considered documentation of CESOM’s management of its environmental, safety and health performance; compliance with Mozambican permitting requirements; and stakeholder engagement and disclosure of information about the project and its operations.



Environmental and Social Assessment and Management System (ESMS): As this is a greenfield project, CESOM currently has no ESMS in place for the construction or operation of the project. Aspects related to the identification and management of environmental and social impacts are described in the paragraphs below. In order to manage the environmental and social risks and impacts associated with the construction and operation of the CESOM project, as indicated in the ESAP action item 1, Scatec Solar, as the EPC and O&M contractor, will develop an ESMS suitable to the scale of the project and which meets the requirements of applicable Mozambican laws and IFC Performance Standards. The ESMS will include policies, plans, manuals and procedures aligned with ISO 14001. The ESMS will incorporate the Environmental Management Plan (EMP) developed for the project as well as the aspects related to construction covered in the WBG General Environmental Health and Safety (EHS) Guidelines.



Policy: Scatec Solar has a corporate Health, Safety and Environment Policy which describes the company’s commitment to the protection of the environment and people, and the safety of its employees. The policy requires compliance with applicable laws and relevant health, safety and environmental standards. The corporate policy applies to all aspects of its operations – construction, operation and maintenance; and is communicated to employees and other stakeholders. As indicated in the ESAP action item 1, as part of the ESMS, Scatec Solar will develop a project-specific policy which meets the requirements of this Performance Standard.



Identification of Risks and Impacts: In line with the Mozambican environmental regulations, a Simplified Environmental Study (SES), which can be found at the end of this document, was conducted for the project as required for projects categorized as ‘category B’ in accordance with Decree 45/2004 which regulates the process for environmental impact assessments. An EMP was prepared alongside the SES and submitted to the Zambezia Provincial Directorate of Environmental Coordination (Direccao Provincial para a Coordenacao da Accao Ambiental da Zambezia). The SES was conducted by Environmental Resources Management (ERM) in partnership with Estudos de Impacto Ambiental Lda (Impacto). The SES was approved in November 2015 but the issuance of the environmental license for the project is pending payment of the license fee. It is noted that although the project did not require a full environmental impact assessment, the SES covered the relevant local environmental and social regulations and the key aspects of the IFC Performance Standards relevant to the project. The SES covered the
project design, construction, operations and decommissioning. The SES addressed project alternatives; identification and assessment of environmental and social risks and impacts; and measures to avoid, mitigate or offset the impacts identified. The potential impacts identified and assessed include air quality; biodiversity; hydrology and water quality; occupational health and safety (OHS); waste; noise; traffic and visual impacts; and geology and topography. The SES also included a socio-economic baseline of the communities around the project site. The project EMP identified measures to minimize the impacts associated with the project.



The acquisition of land for the project site involved economic displacement therefore a Compensation Framework and a Simplified Land Use and Compensation Plan (SLUCP) were developed for the project, with the SLUCP officially approved by the Mozambique authorities in January 2016. Additional information on the land acquisition, community engagement and compensation is provided in subsequent sections – Performance Standard 5 and Stakeholder Engagement.



As previously mentioned, the project site is considered a modified habitat and as such no significant impacts on biodiversity have been identified. The potential impacts of the solar PVs on birds and their pathways were assessed in the SES and measures to minimize risks have been identified in the EMP. It is noted that for solar PV projects, glare is generally not an issue as PV panels are designed to absorb sunlight rather than reflect it, as is the case with other technologies such as concentrated solar power (CSP).



Management Programs: Project-specific management programs are developed as applicable for all Scatec Solar projects. The health, safety, environmental and social requirements for the construction phase have been identified in the company’s EPC contract. As indicated above, for the Mocuba project, Scatec Solar will develop and implement a management system and will integrate the project EMP into the system. The ESMS and the associated documents will cover the construction phase and will be updated to cover the operations phase.



Organizational Capacity: Scatec Solar will appoint a Health, Safety and Environmental (HSE) Officer to oversee the implementation of the ESMS and the associated procedures for the construction and operations phases. This is covered under ESAP action item 2. In addition, Scatec Solar will ensure that its subcontractors appoint HSE personnel for the construction phase. As indicated in the EPC contract requirements, Scatec Solar will also appoint a Community Liaison Officer (CLO) who will be responsible for overseeing the interaction with the affected communities and other stakeholders.



Emergency Preparedness and Response: CESOM will ensure that Scatec Solar develops and implements an Emergency Preparedness and Response Plan. The plan will identify emergency scenarios for both construction and operations phase, i
ncluding – fires, explosions, medical emergencies, accidents, spills, property damage and extreme weather conditions. All emergency procedures and communication protocols will be documented in the plan.



Monitoring and Review: During construction and operations all parameters that require monitoring in line with local regulations will be monitored, as defined in the project EMP. Periodic safety, health and environment audits/inspections will be conducted by CESOM; and monitoring data and reports will be provided to the local authorities as required.



As covered in ESAP action item 1 for this project, for the operations phase, CESOM will define key performance indicators (KPIs) in order to monitor HSE parameters such as lost-time incidence frequency rate, accident free days, water consumption, wastewater parameters and air emissions. In addition, the HSE Officer will define an integrated HSE report to cover key HSE KPIs and present it to senior management for review. The HSE KPIs will include: compliance with legal and regulatory requirements; HSE management system progress report; water consumption; solid and liquid waste management; safety statistics, including leading and lagging indicators; community complaints and community engagement activities. An annual monitoring report will also be submitted to IFC

During the construction phase, it is expected that the total workforce on the project will be approximately 360. It is also expected that a substantial number of workers will be recruited from the local community in Mocuba and the surrounding districts. There will be no workers’ accommodation erected for the project; workers will be housed in Mocuba and will be transported to and from the project site. When fully operational, CESOM is expected to have six full time employees for operations and maintenance as well as seven full-time third-party security personnel and 20 part-time third-party workers for cleaning and groundskeeping.



Human Resources Policies and Procedures: During the construction phase, workers will be subject to a Project Labor Agreement (PLA) to be instituted by Scatec Solar. The PLA will incorporate information such as working hours, standard contracts, minimum wage requirements and security requirements, and will also be applicable to all sub-contractors. As indicated in the ESAP action item 4, Scatec Solar will ensure that the PLA as well as the HR Procedures for the operations phase meet the requirements of this Performance Standard as well as applicable Mozambican labor laws.



Workers’ Organization: Due to the stage of the project, there is no indication as to the number of unionized employees expected to be involved in the construction phase. It is noted however that the PLA will be between the Scatec Solar, the sub-contractors and the relevant unions as may be applicable to the project. During operations, Scatec Solar will allow freedom of association in line with the requirements of this Performance Standard.



Non-Discrimination and Equal Opportunity: Scatec Solar is committed to the principles of employment equity, equal opportunities and empowerment, regardless of gender, race, color or creed. As part of the PLA and HR Policies and Procedures for the operations, Scatec Solar will develop and implement a formal policy on non-discrimination and equal opportunity to cover all aspects of the CESOM project.



Grievance Mechanism: As indicated in the labor requirements for the EPC contract, a grievance mechanism will be in place for workers during the construction phase. For the operations phase, Scatec Solar will ensure the HR procedures incorporate adequate grievance mechanism procedures.



Occupational Health and Safety (OHS): As this is a greenfield project, Scatec Solar as the EPC and O&M contractor, will develop appropriate OHS procedures for the construction and operations phase which are consistent with the requirements of this Performance Standard and local Mozambican Laws including the Occupational Health and Safety Act and Construction Regulations. This has been included as action item 5 of the ESAP for this project. KPIs for this project will include OHS indicators which will be documented as part of the project improvement process. Scatec Solar will provide appropriate protective equipment for
all its staff and project workers and provide the required training to ensure that staff and project workers work in a safe manner. Scatec Solar will also ensure that sub-contractors provide appropriate protective equipment and training and also comply with all the requirements of local Mozambican Laws and this Performance Standard.



Workers Engaged by Third Parties: It is expected that during the construction and operational phases Scatec Solar will make use of service providers for security and maintenance roles. As set forth in the ESAP action item 6, Scatec Solar will develop and implement a procedure to ensure contractors’ labor and working conditions comply with the requirements of this Performance Standard and Mozambican Laws, including consideration for grievance mechanisms for third party workers and fair working conditions.

Potential pollution issues during the project’s construction phase will be those typically associated with construction sites such as dust, noise, oil spills and traffic. All these impacts are limited and temporary and will be mitigated with standard mitigations measures which are included in the EMP. During operations, the main issues relate to water use and management, waste management, and visual impacts. Potential nuisance impacts during the construction and operations phases to the broader community are expected to be limited. It is noted that pollution impacts associated with solar PVs are not as significant as other solar power generation projects; these impacts are briefly described in the paragraphs below and can be largely mitigated through effective implementation of the EMP associated with this project. Where required, additional measures have been included in the ESAP for this project as indicated below.



Energy and Material Efficiency: The highest amount of resources and materials will be consumed during the construction phase. Energy for the construction project will be supplied by diesel/petrol generators. During operations, the energy supply will be drawn from the energy generated by the project.



Water: During the construction phase, water will be required for road construction, dust suppression, drinking water and domestic purposes. It is estimated that approximately 10,000 liters of water will be required per day during the construction phase. Given that the project involves PV rather than CSP technology, water consumption will be limited during operations; water will only be required for cleaning and domestic purposes. It is estimated that 4,000 liters of water will be required per week and 400,000 liters will be required for each cleaning cycle; on the average, one cleaning cycle per annum is anticipated. Water for the project will be sourced locally and the project will obtain the water abstraction authorization from the municipality.



Greenhouse Gas (GHG) Emissions: As this is a solar project, the GHG emissions associated with the operations phase of the project are minimal. The GHG emissions associated with the combustion of fossil fuels for power generation and transportation during construction will be limited and temporary. Therefore, the project will not be required to quantify and report the CO2-equivalent emissions as required under this Performance Standard.



Pollution Prevention: During the construction phase, air emissions from the project will primarily be dust/particulates from land clearing and earth works as well as particulate matter, nitrogen oxides (NOx), carbon monoxide (CO) and sulfur dioxide (SO2) from the combustion of fuels. The air quality assessment in the SES indicates that there will be temporary negligible impacts on sensitive receptors (residential areas). Measures to minimize these impacts have been identified in the project EMP.



Noise pollution is expected from the project d
uring construction and operations. The baseline noise assessment conducted during the SES indicated that there were no major noise-emitting sources and no sensitive receptors within 500m of the project site. Noise attenuation analysis in the SES revealed that beyond 500m, noise from the project site during construction will on the average be 55dB or less. Measures to minimize noise impacts have been identified in the project EMP. Available data on noise generation by PV plants during operations indicates noise at source could be up to 60dB. With attenuation, noise impacts are expected to be minimal.



In general, as indicated in Performance Standard 1, the project will be required to develop a monitoring program which covers all emissions.



Solid Waste Management: Construction waste such as domestic waste, inert waste (rubble, spoil) recyclables (plastics, paper, metals.) and small quantities oil-contaminated rags will be sorted on site and collected by a licensed waste collector for recycling and disposal as appropriate. General waste generation during operations is expected to be minimal; the waste will be disposed of by a licensed waste contractor. Wastes from the solar panels during maintenance will be collected and recycled/disposed of appropriately. As part of the procedures for the ESMS, a Waste Management Plan will be developed and implemented by Scatec Solar; this has been included in the ESAP as action item 7 for this project



Hazardous Materials Management: Chemicals to be used during construction and operation of the power plant may include herbicides for weed control and cleaning chemicals used for cleaning the solar panels. These chemicals will be stored in small quantities on site and the measures identified in the EMP will be implemented to minimize any impacts. Other hazardous materials include fuels and lubricating oils. Petrol/diesel for generators will be stored in above-ground storage tanks fitted with containment bunds. It is estimated that an average of 600 liters of fuel will be used per week during the construction phase. Biodegradable oil will be used in the transformers and waste oils will be collected for recycling.

Community Health and Safety: The project is not expected to lead to significant safety and health impacts on the community. Increased traffic associated with the project, in particular during the construction phase, may pose some safety risks to the community. It is estimated that approximately 600 trips will be required to transport equipment to the site. In addition, daily traffic will include the transport of personnel to and from the site. During the operations phase, the site will be fenced and public access to the solar plant will be prevented. Traffic impacts will be greatly reduced as vehicles will only be required to transport employees to work on a daily basis. If required, infrastructure for routine maintenance and upgrading phases will also be transported to site by road. The implementation of measures identified in the EMP is expected to reduce any potential impacts due to traffic associated with the project.



Hazardous Materials Management and Safety: The project will require the use of limited quantities of hazardous materials such as cleaning chemicals, herbicides, fuels and oils. As discussed under Performance Standard 3, the quantities are limited and the materials will be managed in a suitable manner to avoid community exposure to these materials.



Ecosystem Services: In relation to ecosystem services, the impacts on the community identified relate to regulating services. The clearing of the site and change in land use will potentially lead to increased erosion within and around the project site. As this impact will be permanent, the overall significance is considered moderate and measures to minimize the impacts have been identified in the EMP.



Emergency Preparedness and Response: As indicated under Performance Standard 1, CESOM/Scatec Solar shall develop and implement an Emergency Preparedness and Response Plan which covers the procedures for informing stakeholders and responding to emergencies.



Security Personnel: Site security will be managed by a private security firm who will provide trained unarmed security personnel. CESOM/Scatec Solar will ensure that the security contractor operates in a manner which meets the requirements of this Performance Standard.

A public consultation meeting was held on 26th of August 2015 as part of the SES process. The SES project consultants provided the information about the meeting to the District Administrator, who invited the respective chiefs of the area, and who informed the various villages. The objective of the meeting was to inform all interested and affected parties of the project, and provide them with answers to any questions they had. Over 200 people attended the meeting from the affected community. The main issues raised in the meeting were related to the compensation for the affected property, whether they could continue farming and employment on the project.

A further consultation meeting, in which IFC was a participant, was held on 5 November 2015 at the Mocuba District headquarters, to inform those affected of the project status and the outcomes of the SES process. The meeting was attended by district government officials, the head of the administrative post, heads of villages, officials and representatives of those affected. The turnout at this meeting was poor due to other unforeseen circumstances in the District that day. The main issues raised in this meeting were around the project’s social responsibilities in the area, compensation for loss of assets and access to land, allocation of replacement land, and some technical questions around the operation of the solar panels.

Ongoing consultation with authorities and village representatives has taken place through a Mocuba project representative who is based in Maputo, and regularly visits the Mocuba authorities, village chiefs and representatives of the affected villages. This has not been as part of a formalized engagement process. As indicated in ESAP action item 3, the project will develop a stakeholder engagement plan (SEP) including a program for consultation with those affected, particularly those directly affected by the land acquisition and who are most directly affected by the project. The SEP will be designed and implemented prior to construction, during construction and to a lesser degree, during operation. As indicated under Performance Standard 1, a project CLO will be recruited to be present in the local area and receive grievances as part of a broader project grievance mechanism that will allow for grievances to be addressed in a timely and effective manner.

Contact Person: Roberto Berardo
Company Name: Scatec Solar
Address: Unit 109B , The Foundry, 75 Prestwich Street, Green Point, Cape Town 8005
Email: mailto:Roberto.berardo@scatecsolar.com
Phone: +27 (0) 823106233
Facsimile: +27 86 560 3828

Please note that IFC is in the process of assessing broad community support for the project under consideration. The information on broad community support will be disclosed as soon as it becomes available.

Mocuba Solar(36787) Supervision Disclosure Snapshot – Version 2
Description	Anticipated Completion Date	Status	Comments	Completion Date
Environmental & Social Management System CESOM will design and implement an Environmental and Social Management System for the construction and operations phase consistent with IFC Performance Standard requirements. The System will define roles and responsibilities, and other necessary elements (manual of procedures) to enable all operations to comply with Mozambican laws and regulations and IFC Performance Standards. Amongst other elements, the management system will include a policy, an emergency preparedness and response plan, an emission monitoring program, HSE KPIs as well as an external grievance mechanism.	01-May-2016	Completed	Completed	1/31/2017
Organizational Capacity CESOM will appoint qualified individuals to implement the management system, including the appointment of an Health Safety Environment Officer and a Community Liaison Officer	01-May-2016	Completed	Completed	1/31/2017
Stakeholder Engagement Plan CESOM will develop a Stakeholder Engagement Plan for implementation during the project lifecycle, including an accessible and effective external grievance mechanism	01-May-2016	Completed	Completed	1/31/2017
Human Resources Policies and Procedures CESOM will develop and implement a Project Labor Agreement for the construction phase and Human Resource Policies and Procedures for the operations phase which meet Mozambican regulations and the requirements of Performance Standard 2. The documents will include grievance mechanisms and non-discrimination policies	01-May-2016	Completed	Completed	1/31/2017
Occupational Health and Safety CESOM will develop and implement Occupational Health and Safety (OHS) policies and procedures. The policies and procedures will include identification of managers/persons responsible for OHS performance, on-going training, and a mechanism for reviewing deviations from procedures and improving performance both during construction and operational phase. The procedures will also include the management of contractor OHS matters	01-May-2016	Completed	Completed	1/31/2017
Third Party Workers CESOM will develop and implement a procedure to ensure contractor labor and working conditions comply with Performance Standard 2.	01-May-2016	Completed	Completed	1/31/2017
Waste Management Procedure CESOM will develop a Waste Management Procedure for the construction and operations phase which meets the requirements of Performance Standard 3.	01-May-2016	Completed	Completed	1/31/2017
Livelihood Restoration Plan Central Solar de Mocuba’s Simplified Compensation Plan (SLUCP) will be further developed to include a Livelihood Restoration Plan, incorporating measures to restore and improve livelihoods over and above the direct compensation measures. Other essential aspects of the SLUCP include: ·         An ongoing consultation process and grievance mechanism, ensuring that those affected are kept informed about project progress and compensation timelines; ·         Ensuring that compensation amounts payable are equivalent to the full replacement value of the losses, incorporating increased rates to account for inflation; ·         Providing compensation for the assets lost due to land acquisition as well as the additional season lost due to the missed planting season; ·         Development of livelihood restoration and improvement measures through a participatory process and ensuring appropriate and sustainable livelihood interventions; and Ensuring that replacement land provided is equivalent to, or better than, previous land replaced in terms of accessibility, quality, and size of plots in comparison to previous, and approved by those affected. The current land use of the replacement land shall also be assessed and potential displacement impacts here must also be assessed and compensated for.	31-Mar-2016	Completed	Completed	12/30/2017
Implementation of the SLUCP including payment of compensation for lost assets and replacement land shall be undertaken in time to ensure that those affected are able to continue their food security according to seasonal harvests. Should this not be possible, an interim compensation measure shall be determined through a consultative process, and provided such that food security is not affected.	31-Mar-2106	Completed	Completed	12/30/2017