Environmental and Social Assessment and Management System
SCL, the holding company, does not have a formal documented environmental and social management system (ESMS) at corporate level. However, SPL has established an Integrated Management System (IMS) which includes Environment Management System (EMS) and Occupational Health and Safety Management System (OHSMS) that is applicable to all its operational projects and assets of its subsidiaries. The IMS has been certified with ISO 9001: 2008 - Quality Management System, ISO 14001: 2004 - Environmental Management System and OHSAS18001: 2007 “ OHSMS certificates. SPLs EMS and OHSMS include procedures for compliance with environmental/OHS legal requirements, impacts/hazard identification, environmental/OHS monitoring and measurement amongst others.
The subsidiaries formed under the turbine division of SCL, i.e. SMPCL and SBIIPCL, have developed project-specific Environmental, Health, Safety and Social Management Systems (EHSSMS) for plant operations; SBIIPCL (an existing IFC client) has developed a project specific EHSSMS for construction too.
As indicated in ESAP action #4, SCL will develop and implement a corporate ESMS for project conceptualization, planning & design, construction, operation and decommissioning in accordance with the requirements of national E&S regulations; IFC PSs; and the applicable provisions of the World Bank Group (WBG) Environment, Health and Safety (EHS) General Guidelines 2007 as also the Thermal Power Plant EHS Guidelines, 2008. For the operational phase, the existing IMS (currently applicable to SPL projects only) will be upgraded to include specific procedures for stakeholder engagement, community grievance management, emergency preparedness and response (onsite and offsite), procedures for EHS training of employees and contract workers, procedures for recording, investigation, reporting and corrective action in relation to EHS incidents including those involving contractors workers and periodic monitoring of EHS performance (refer ESAP action#5). This upgraded IMS will be implemented for all projects of SPL and its subsidiaries.
The proposed corporate ESMS at SCL will include detailed procedures for: (i) project planning and design; (ii) site selection and analysis of alternatives; (iii) identification and assessment of E&S risks and impacts through PS compliant third party ESIAs (or third party audits for expansions or acquisitions); (iv) development of E&S mitigation measures and management plans in compliance with IFC PS; (v) ongoing monitoring, reporting and management review of E&S performance; (vi) construction worker accommodation guidelines; (vii) onsite and offsite emergency response procedures; and (viii) stakeholder engagement and a community grievance mechanism. The ESMS will clearly define the E&S assessment and management process separately for development of new assets and for acquisition of operating assets. As indicated in ESAP action#6, SCL will commission third party compliance audits of its ESMS based on sample site visits on a half-yearly basis for the first two years of IFC lending and on an annual basis during subsequent years.
Policy
SCL has established an environmental policy and health and safety policy along with safety management guideline which is also applicable to the turbine unit. SCL however does not have any policy that outlines the companys vision towards resource efficiency and pollution prevention or a policy detailing community health and safety aspects.
Subsidiary SPL has established policies for quality management, environmental management and OHS management. The policies exhibit SPLs commitment both at SPL and the plant level towards effective management of environment, and health and safety aspects. The policies articulate environmental objectives for reduction in waste oil generation, water consumption and electricity consumption.
As a part of the integrated ESMS development (refer ESAP action #1), SCL will update its Environment, Health, Safety and Social (EHSS) Policies to be consistent with the IFC PSs and ensure that its policy framework covers among other aspects: compliance with local laws; resource efficiency and adherence to good international practices; occupational health and safety for employees and contract workers; addressing impacts on affected communities; and assessing and managing adverse environmental and social impacts. The SCL policies shall be applicable to both SPL and the turbine unit.
Identification of Risks and Impacts
At present, the company and its various subsidiaries undertake third party Initial Environmental Examination (IEE) and ESIA, as relevant, for all its projects to meet national requirements, obtain regulatory approval, and to meet requirements of multilateral donor agencies, as applicable. However, there is no structured corporate approach to E&S risk assessment.
SPL, as part of its IMS, has established procedures to identify environmental risks associated with the plants operation under "procedure for identification of environmental aspects which delineates time bound responsibilities for plant staff for execution of measures prescribed therein. The IMS also recognizes risks associated with OHS aspects during plant operations. Potential hazards are identified based on job risk assessment from internal and external sources. Hazards are maintained in "facility risk assessments form and "job risk assessments form and assessed through procedures set up under "Procedure for Hazard Identification and Risk Assessment (HIRA).
The Turbine unit of SCL is in the process of getting a certified IMS and has developed a series of procedures on EHS aspects and operations.
IFC will require SCL to undertake an IFC Performance Standard compliant ESIA prior to developing any new asset. SCL will complete a third party verified Social Impact Assessment (SIA) in accordance with IFC PSs before taking possession of the land and full third party verified ESIA prior to start of construction.. The scope of the ESIA will be established as part of the screening and scoping exercise, which will be undertaken at the time of project feasibility report preparation and will cover assessment of transboundary impacts where relevant. The ESIA process will be defined in the ESMS and will be suitably linked to the project cycle. SCL will ensure that project related Engineering, Procurement and Construction (EPC) and other Operation and Maintenance (O&M) contract documents include appropriate E&S provisions that : (a) the contractor will design the project in accordance with IFC PSs and applicable WBG EHS Guidelines; (b) an ESIA compliant with PSs will be made available to be the EPC contractors prior to start of construction and the contractor will need to implement the mitigation measures specified in the ESIA. SCL will on its part include a contingency budget in project cost to account for any additional cost to meet PSs that may emerge from the ESIA.
As indicated in ESAP action#10, SCL will implement corrective action plan for each individual facility as included in findings of the ESDD report carried out by third party consultant in May 2016.
The following sections describe the specific requirements under the ESMS with respect to IFC PSs 3- 8.
Procedures relevant to resource efficiency and pollution prevention:
Site specific pollution prevention and mitigation measures associated with each project of SCL are identified as part of the IEE/ESIA study as applicable. Project specific measures and targets for improving efficiency in terms of water consumption, energy consumption and other resources and material inputs are implemented at project level. Environmental management and monitoring programs exist at project level and are implemented by the site management. All the operational and under construction assets of SCL use either natural gas or liquid fuel (Heavy Fuel Oil).
The main source of air emissions are the stacks attached to the engine generators and based on ESDD reports it was observed that stack emissions are mostly compliant to applicable WBG EHS guidelines except for PM emissions from the three HFO-fueled KPCL plants which marginally exceed the applicable WBG EHS guidelines values. All the other operating plants of SCL have the design emission norms compliant with the applicable WBG EHS guideline requirements. Comparison of dispersion modeling outputs for all operational facilities reveal that maximum Ground Level concentration (GLC) from each of the facilities is less than 25% of the national ambient air quality standard, as per WBG EHS guideline requirements except for KPCLs plant at Jessore where the modeled incremental GLC for SO2 and NOX is slightly more than 25% of national standard while the actual monitored ambient air quality meets the national standards even though this includes all increment of GLC from existing plant.
IFC invested in KPCL I in 1999 and IFCs review indicated that the project will be able to meet applicable IFC''s requirement with some additional actions. The plant has been in operation since 1998 and the current ambient air quality with 24 hr concentration of SPM, SO2 and NOx levels of 77 µg/m3, 14 µg/m3 and 29 µg/m3 expectedly remain well below the national ambient air quality standard and validate IFC''s view at appraisal. As a part of ESDD, air dispersion modeling was undertaken to take into account Khulna II plant which came into operation in 2011. It is observed that the emission levels from the Unit II meet the applicable WBG EHS guideline values and the maximum GLC values are less than 25% of the national ambient air quality standard and represents a non-degraded air-shed.
Domestic wastewater at all facilities is either disposed to a septic tank or treated in a sewage treatment plant. Most of the plants have installed closed loop cooling water systems and therefore do not have any discharge directly from plant operations. Effluent Treatment Plants have been installed at all facilities to treat the backwash water of activated carbon filters, activated sand filters and demineralized water production. Thermal discharge is generated from few facilities (KPCL Unit I, Bibiyana II and Meghnaghat) and the outlet temperature of cooling water is measured and recorded on a regular basis and was observed during due diligence to be within prescribed limits.
Ambient noise levels are monitored by each individual facility at a minimum of four locations outside the plant boundary and were generally noted to be in compliance with IFC guideline values. Instantaneous noise levels are measured within the plant premises weekly. The noise levels were noted to be as high as 110 dB near the engine halls. At plants where community grievances related to high noise levels have been reported, the company has implemented supplemental measures such as erection of up to 7.5 m high noise barrier walls, improving the sound insulation of the power house and installing new silencers such as at SNPL and SNPUIIL. As indicated in ESAP action#11, SCL will monitor ambient noise levels at nearest receptor locations and compare the values with Bangladesh guideline values. In case the ambient noise levels exceed the guideline values, noise dispersion modeling will be undertaken to evaluate the incremental increase in noise from the plant and if the incremental increase in noise levels is more than 3 dBA, mitigation measures will be implemented to bring the ambient noise levels within guideline values.
Hazardous waste generated is in the form of oil rags and waste oil which are disposed of through authorized vendors.
Procedures relevant to community health, safety and security:
Site specific emergency response plans are formulated at project level during operations however these do not cover the community health and safety risks.
SCL will require each project company to implement the measures outlined in the Environmental and Social Management Plan (ESMP) related to community health and safety risks both during construction and operation and also to routinely examine the potential social impacts of labor influx wherever contractors bring in significant number of migrant laborers for construction. SCL will require contractors to provide appropriate amenities/ facilities for such migrant labor compliant with national law and IFCs PS 2 requirements including procedures to minimize the risk of incremental/accidental community exposure to disease and other potential host community impacts due to influx of labor. Further, SCL will require project companies to ensure that all its employees and laborers undergo periodic health examinations and require contractors to implement a periodic health checkup program for contract labor as well.
SCL and its subsidiary companies engage unarmed security personnel directly and also source security personnel from reputable security service providers. SCL and its project companies will develop and implement a security personnel procedure in accordance with IFC PS 4 for ensuring that: past records of security personnel employed are screened; security personnel have clear objectives and permissible actions laid out; security personnel are trained in avoidance of human rights violations; security incidents are recorded, investigated and corrective action implemented; bona fide complaints against security personnel are investigated and appropriate disciplinary actions are implemented; and there is a grievance mechanism for aggrieved members of community or employees, in the event of a violation of the code for security personnel (refer ESAP action#9).
Procedures relevant to land acquisition and involuntary resettlement:
For the two projects of the turbine division, the project sites were pre- decided by the government and as a result, the company had no role in site selection. For SMPCL and SBIIPCL, 25 acres and approximately 102 acres of land (for the main plant and its associated facilities) was acquired by the government as per the Acquisition and Requisition of Immovable Property Ordinance, 1982 and subsequently leased to the company.
For most SPL projects, the land for projects is identified based on factors such as proximity to water resources, proximity to supporting infrastructure such as gas pipelines & power transmission lines, availability of land, and cost of land. Of the total 8 existing SPL assets, land was purchased directly from buyers on willing-buyer, willing-seller basis for 5 projects. For the remaining three, land was acquired by the district administration and subsequently leased to the company. SPL and its subsidiaries have not dealt with involuntary resettlement issues in any of its projects.
At the corporate level, there is no mechanism to handle potential involuntary resettlement issues in a uniform manner. As part of the corporate ESMS, the company will develop and implement formal procedures to ensure compliance across all subsidiaries with Bangladeshs and IFC requirements for the management of land acquisition, resettlement and rehabilitation of project-affected people. The ESMS will define the scope of social impact assessment, the process for identification of project affected families, guidelines on development of resettlement action plans or livelihood restoration plans, ongoing monitoring requirements and the process of triggering a resettlement completion audit where appropriate. The social impact assessment process will be integrated into the company''s land take processes. If any project involves physical displacement then the company will ensure development of a Resettlement Action Plan (RAP) which will include measures to be implemented for payment of compensation at replacement cost and for resettlement & rehabilitation of project affected families. The ESMS will include a detailed guideline on preparation of a RAP and covering all categories of project affected families, those with legal titles and those without. For those without legal titles to land and users of public land, there will be provision for compensation for structures at replacement cost and transition allowance/ support. To ensure consistency with the PS 5 requirements, the ESMS will include the entitlement for resettlement/ relocation with security of tenure for informal settlers.
Further, the ESMS will include for all projects involving no physical displacement but only loss of livelihood, the requirement to develop and implement livelihood restoration measures and sub-project plans covering all families affected by loss of livelihood. This will include titleholders, informal settlers, encroachers, other users of land such as laborers, and sharecroppers. The livelihood restoration strategy will be heavily focused on assisting affected households to identify alternative land plots and/ or alternate livelihoods and occupations so as to ensure full livelihood restoration.
Procedures relevant to biodiversity conservation and sustainable management of living natural resources:
SCL does not have a comprehensive screening process to avoid ecologically sensitive areas at early stage of project conception or commitment to avoid such areas during site selection stage in compliance to the requirement of PS 6. In the existing operational projects, material adverse impact on biodiversity, particularly threatened species of avifauna is not expected.
SCL as part of the ESMS will develop procedures to ensure that PS6 requirements are fully met for all proposed projects. SCL will require project companies to put in place procedures to: assess, avoid and where avoidance is not possible mitigate material impact, if any, on threatened species of flora and fauna. The procedures will ensure that IFC requirements are met for modified habitats that include significant biodiversity value, natural and critical habitats; and will ensure access of communities to natural resources on which their livelihoods depend. SCL will need to recognize that critical habitat areas are to be avoided completely unless no other viable alternative exists for the project development and the project does not lead to measurable adverse impacts on those biodiversity values for which the critical habitat was designated.
Procedures relevant to indigenous peoples:
SCL and its subsidiaries currently have no procedure for identification of indigenous peoples (IPs). Going forward, SCL will, as part of the ESMS, develop and implement a procedure to identify and mitigate all identified impacts on IPs. SCL will ensure that the ESIA is undertaken in accordance with the provisions of IFCs PS 7 and mitigation plans achieve outcomes consistent with PS 7 provisions. The ESIAs to be done for all proposed/ acquired projects will be required to cover the potential impact on IPs, if any and be supplemented by an Indigenous Peoples Development Plan (IPDP). The latter plan will consist of a profile of affected IPs and baseline information, consultation and participation strategy, benefits enhancement measures, implementation arrangement including institutional and financial and a monitoring and evaluation plan. The ESMS will include the requirement for Free Prior Informed Consent (FPIC) as per IFC PS 7 if IPs need to be relocated from lands or natural resources under traditional ownership or customary use or critical cultural heritage; if such lands are otherwise impacted by a project; or if a project may impact critical cultural heritage that is essential to the affected IPs. FPIC will be established through good faith negotiation between the client and the affected communities of IPs and will include (i) the mutually accepted process between the client and affected communities of IPs, and (ii) evidence of agreement between the parties as the outcome of the negotiations.
Procedures relevant to cultural heritage:
SCL will require its project companies to develop and implement a chance find procedure including for finds of archaeological, paleontological, historical, cultural, artistic, and religious values, as well as unique natural environmental features that embody cultural values, such as sacred groves. Further, the project companies will be required to put in place procedures to protect and enhance sacred sites (e.g., ponds, forest groves, etc.) in consultation with community members and through support for local religious institutions, festivals, ceremonies and local cultural heritage consistent with IFCs Performance Standard 8.
Management Programs
Turbine division of SCL has in place robust EHS management programs however the programs are project specific and cover both construction and operation phases. Social management programs at project level include community development program and grievance redress mechanism for community.
SPL, as part of its IMS, has developed project specific procedures for managing Environmental, OHS, emergency preparedness and response, human resource development, and contractor management but social management programs are not included as part of the IMS. SPL has also developed a Construction Health and Safety Management Plan which is generic and provides only the outline of definitions and guidance for management. There is no mechanism to monitor the implementation of management measures outlined in the ESIA-ESMP during construction phase.
SPL, being ISO certified, has formulated performance objectives for health, safety and environment that are applicable to all the operational assets under SPL. The objectives include zero incidents at plant level, lube oil handling and avoidance of spills and leakages, reduced consumption of rags, etc. These objectives are formulated at corporate level and passed on to certified plants as part of the continual improvement process. EHS and operational targets have not yet been drafted for the turbine based plants under SCL.
Organizational Capacity and Competency
SCL does not have an EHS department at corporate level. SCL including turbine division and SPL uses local E&S consultants for obtaining the regulatory approvals for their projects and also for meeting the E&S requirements of their lenders. The turbine division has project specific EHS teams functional at plant level and all issues at plant level are managed by the EHS committees while SPL at the corporate level has a standard and compliance department which manages the quality, environment and health and safety aspects.
SPLs IMS manual identifies management responsibilities and each individual project of SPL has established, and maintains an organization structure that defines roles and responsibilities and authority for implementation of the IMS. Typically at each asset, a team of permanent staff and casual staff are engaged for EHS aspects and the plant in-charge directly reports to the Deputy Managing Director, SPL, who is responsible for all operational projects. The plant in-charge, in addition to managing operation and maintenance of the plant, is responsible for ensuring compliance with environmental legislation and IMS policies and procedures of SPL. SCL will require each major contractor to deploy dedicated qualified safety professionals, environmental & social professional and site supervisors.
As indicated in ESAP action #2, SCL will establish a corporate EHS department staffed with minimum three personnel - lead by E&S manager and supported by assistant managers “ EHS and social/community relations. SCL will further obtain additional support by engaging third party auditors to undertake quarterly third party EHS audits for new project to be constructed/acquired by SCL prior to asset acquisition decision or within 3 months of start of construction and bi-annual audits for the first year of. Also SCL will make it mandatory for contractors to have appropriately experienced EHS personnel at each construction site and report to SCL on EHS performance periodically.
Monitoring and Review
SCL does not have a corporate mechanism for monitoring and review of the EHSS performance of its projects. The turbine division subsidiaries of SCL have project-specific health and safety inspection schedules, EHS committees, environmental monitoring plans, etc. but do not directly report to SCL at corporate level on EHS related matters.
SPL, being ISO certified, has formulated performance objectives for health, safety and environment that are applicable to all the operational assets under SPL. SPL and its subsidiaries in compliance with the requirements of IMS have put in place a monitoring mechanism which includes submission of monthly report on performance (including a section on EHS covering aspects on emergency preparedness, housekeeping, OHS and EMS, other safety information (including safety statistics), Ambient Air Quality (SPM, SOx and NOx) and stack emissions). As part of the OSHMS, the site management undertakes monitoring of OHS aspects on a regular basis as per procedures outlined in the OHS Manual, which includes general inspection of safe work practices in the plant premises, use of PPE, housekeeping, electrical safety, fire protection, tools and machinery, and first aid. All projects have established site level Joint Environment and Health & Safety Committee (JHSEC) which meets on a monthly basis to assess plant level EHS issues and reports to the corporate Management Representative. Quarterly management review meetings are conducted by SPL at corporate level to track progress of the plants and monitor whether the QHSE targets/ objectives are being met or not. Internal audits are carried out to ensure effective implementation of the IMS and to look for opportunities for improvement. External audit are conducted annually by independent third party accredited Organization ( Bureau Veritas), to provide certification or registration of conformity to the requirements of the ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 standards.
Legal compliances are monitored at individual project level in the form of legal compliance registers, however no such document was maintained at corporate level in order to monitor the regulatory compliances of all projects.
