PS5 (Land Acquisition and Involuntary Resettlement) is not applicable because the land for the Project (around 20,000 m2) which is owned by the American University of Iraq - Sulaimani (AUIS) has been provided under a 25 years land occupancy contract for planning, construction and operation of Magma Square. The project did not require any economic or physical displacement in the planning and development of Magma Square. The site is located in the urban area of Sulaimaniya city, in a well developed commercial and residential neighbourhood, and excavation works have been completed therefore, impacts related to PS6: Biodiversity and Natural Resource Management, PS7: Indigenous Peoples and PS 8: Cultural Heritage are not expected

 This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability as the E&S impacts are mostly site specific and localized and can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria and adequately managed through the implementation of a project specific Environmental and Social Management Plan. As all civil and mechanical works have been completed, the construction and labour related impacts are minimal at this stage of the project.

Specific key environmental and social issues reviewed include: i) project sponsor’s corporate environmental and social management capacity to operate in a manner consistent with IFC Performance Standards; ii) environmental and occupational safety aspects typically associated with operations of restaurants, food courts and mixed retail outlets; iii) efficient use of energy and water resource in operational phase; iv) structural, life and fire safety (LFS) conditions of the project; v) solid waste management, vi) wastewater treatment and disposal, (vii) tenants and visitors health and safety issues such as potable water and emergency response; and (viii) refrigerant selection.

Policy:

Through IFC’s previous investment in Hotel Erbil (# 28566) and Arjaan Erbil (# 32451) the Sponsor’s environmental and social performance has been strengthened to meet IFC’s Performance Standards. For both project, site specific EHS management manual were developed. The project sponsor, Malia Holding Invest, is a company of Malia Group who, as a policy, supports sustainable environment in all aspects of its business activities. Malia Group has developed a code of conduct to protect the environment and reduce the impact of activities. Malia Group have incorporated ten principles of the United Nations Global Compact (UNGC) in the areas of human rights, labour, environment and anti-corruption and reports progress annually. Malia Group has partnered with Contra Intl’ – Zero Waste Act for waste management of paper, plastic, metal, and glass. Minimizing carbon, water, waste, and energy footprint is an essential component of Malia Group approach to sustainability. The sponsor has developed a statement of policy as a guideline and reminder to all tenants as legal and moral responsibility to safeguard their customers/guests and staff members and be conscious of the safety of others, exercise caution not to expose any individual to any risks or hazards.

The company has plans to develop and implement a project Environmental, Health Safety and Social (EHSS) policy, applicable to the company and its tenants, contractors and suppliers, defining objectives and principles for achieving sound EHSS performance according to national laws and IFC Performance Standards.

Identification of Risks and Impacts:

The project was not required to prepare any environmental assessment study under the local regulations. The construction management company, Malia CTI, had health and safety management system implemented during project construction phase. No significant incident, accident or fatality reported during construction. The project specific risks related to life & fire safety and wastewater management are responded by design and installation of robust firefighting system and sewage treatment plant. The building was design for earthquake resistance standards for seismic zone 3 in accordance to the local government requirements. For operational phase, the facility management company has procedures for assessing risks through systematic checks, record keeping and audits.

The company, as part of the operations management system will identify EHS and Social risks and develop relevant procedures.

Management Programs:

The Company has developed health & Safety Committee for facility management headed by the General Manager (GM) and includes 3rd party representatives for food quality and pet control as well as representation of tenants’ committee. The company has also developed a Food Quality Management System as a reference manual for management of food and beverage tenants in Magma Square and has been made part of the lease agreement signed with each tenant. The company, as facility managers, keeps the role of auditor and regulator for food quality management.

The project will have an overarching Environment and Social Management Plan (ESMP) to respond to the environmental and social management and mitigation actions identified under risk assessment and to implement the project in accordance with the requirements of IFC Performance Standards and applicable national legislation. The ESMP provide a framework for subsequent development of site-specific management plans by the tenants operating supermarket and restaurants relating to such aspects as solid waste management (including recycling of wastes as per the Malia Group policy), air emissions management from food preparation areas, water management, hazardous substances management, health & safety and security.

As described in ESAP item #1, the Company will ensure that O&M Contractor (facility management company) develop and implement project level Environmental, Health, Safety and Social (EHSS) Management Plans and procedures in compliance with national regulations and IFC PS for the operational phase, including: a) identification of risks and hazards; b) stakeholder engagement and grievances; c) occupational health and safety; d) human resource (HR) provisions with clear guidelines on employees/workers consistent with the sponsor’s HR policy; e) framework of specific plans/procedures that need to be developed by the tenants operating restaurants and supermarket; f) emergency response plan and implementation procedure; g) wastes and hazardous materials management; h) water and energy resource management; i) L&FS inspections, trainings and drills, j) grievance mechanisms; and k) monitoring and reporting.

Organizational Capacity and Competency:

The Sponsor have dedicated qualified personnel at head office responsible for developing, implementation and monitoring project level EHS&S management system, conducting EHS monitoring programs, leading EHS audit activities, and planning and conducting trainings. As described in ESAP Item #2, the Company will formally create, and appropriately staff, an E&S Section/Unit at the project level with qualified Environmental, Social, Health and Safety professionals appropriately staffed for implementation of the EHS&S management plan and coordinate/monitor/regulate tenants and service providers in implementation of their respective management plans, prepare reports for company and corporate level reporting, and ensuring compliance of IFC’s performance standards and EHS guidelines.

Emergency Preparedness and Response:

The Company will develop a site-specific Emergency Preparedness and Response Plan (EPRP) for implementation by the facility management contractor for the emergencies relating to natural calamities, fire, medical, chemical/fuel spillage, physical aggression, etc. which will be included as part of the contractors’ EHSS Management Plans (ESAP#1). The Company will constitute a team to implement the EPRP, conduct drills with the participation of tenants/stakeholders.

Monitoring and Review:

The Company is receiving managerial and technical support from the Sponsor (Malia Holding) and therefore, are also required to report its environmental, health and safety and social performance of the Project to the Sponsor, as part of the Sponsor’s environmental management system. The Company, through its facility management contractor, will monitoring and regulate the EHS performance of the Project and that of its tenants and service providers.

Operational phase monitoring and reporting requirements, including project-specific EHSS monitoring checklists, audits, compliance reports will be included in the project EHSS Management Plans (ESAP#1).

 The project will provide about 53 (44 males, 9 females) job opening through facility management including 16 internal employees and 37 outsourced/contract workers engaged under security, housekeeping and landscaping services. The project is expected to create 775 jobs through its tenants including restaurants, food courts, retail outlets, supermarket, gym, entertainment, nursery, etc. The project will engage about 70 food and beverages suppliers; 10 fuel suppliers; 50 suppliers related to property maintenance; 40 outsources contractors including security; cleaning, waste management, insurance; and suppliers related to marketing, printing, event management, guest suppliers and amenities; and housing/apartment for expatriate staff.

The project is also expected to provide part-time job opportunities in restaurants and retails for the two adjacent universities having about 20,000 students.

Human Resource Policies and Procedures:

The project Sponsor has an HR management process for all subsidiaries for staffing the organization and sustaining high employee performance. The HR process includes management function that handles recruitment, performance, employee development, career & succession planning, compensation, benefits and employee relations related activities. The HR process has different phases, such as manpower planning, recruitment & selection, orientation & onboarding, performance management, learning & development, terminations. The process includes internal risk analysis matrix for HR related matters and provides a list of indicators for process monitoring and measurements. Malia Group also reports progress under United Nations Global Compact (UNGC) in the areas of human rights and labor amongst others. Communication of Progress report for previous year mentions for availability of company doctor, mandatory pre-recruitment and continuous medical tests, availability of workmen compensation to cover work accidents, induction and awareness trainings, registration of employees in social security as per local regulations, etc.

As indicated in ESAP Item #3, the Company will follow the Sponsor’s HR management process, and will develop project specific HR Manual including HR policy and procedures to meet the requirements under IFC PS 2 including such elements as recruitment, induction, contracts and terms of employment, minimum wages, working hours and overtime, training, leaves, grievance redress, performance appraisal, retirement/separation, employee welfare, disciplinary action, health and safety, compensations and benefits. The HR policy will also refer to such aspects as freedom of association and non-discrimination and equal opportunity and include a project specific procedure related for managing grievances (by employees, workers, 3rd party service providers) according to IFC PS2.

Workers’ Organization:

The Sponsor indicates that it does not restrict employees’ rights to form workers’ organizations. The Human Resource policy and procedures (ESAP Item #3) will include language that does not impede employees/workers from freedom of association and collective bargaining.

Non-discrimination and Equal Opportunity:

The Sponsor’s HR management process requires that the basis for recruitment, training and advancement shall be based on experience, skill and qualifications and the process for recruitment and promotion shall be transparent and consistent.  The HR policy (ESAP Item #3) will include language that prevents non-discrimination and equal opportunity.

Workers Accommodation:

The project will provide accommodation to expatriate employees/workers engaged by the Company or facility management contractor during operational phase. Through the development of project-specific EHSS management plan described in ESAP item #1 and the HR Manual in ESAP item #3, the Company and O&M contractors will ensure that the arrangement of employees/workers accommodations meets IFC requirements.  

Workers’ Grievance Mechanism:

The Sponsor’s HR management process requires for workplace conflict resolution, grievance redressal and responding to appeals as part of employees relations. The aforementioned HR manual (ESAP Item #3) will include a worker’s grievance mechanism consistent with PS2 requirements.

Occupational Health and Safety:

The Sponsor reported on availability of company doctor and mandatory medical tests for employees, trainings for new employees/workers, cleanliness of facility, etc. Malia Group Internal Regulation is approved by the Ministry of Labour compliant with Lebanese labor law and applicable international conventions. The facility management company (O&M Contractor) has established health and safety committee headed by the Facility Management General Manager to monitor and manage all health, safety and food quality related activities within the Food & Beverage Unit in the project. H&S policy statement requires recording and reporting to the committee of all accidents by the tenants and to undertake corrective actions. The policy requires issuance of Permit to Work by the Director of Engineering to the outside contractors to undertake any work within the project. The policy also requires conducting hazards spotting surveillance regularly by the committee members. The Food Quality Management System of the project defines approved practices and standards related to food safety and hygiene, provide a reference guide to Food Quality Standard Operating Procedures set by the Facility Management and provides a framework that ensures a consistency in food hygiene practices. The facility management has the role of food quality management auditor and also has responsibility to impose necessary corrective measures. This manual, being a part of lease agreement signed by each tenant, is a binding document for the tenants to comply with.

As described in ESAP #1, the Company will ensure that the O&M contractors’ obligations and EHSS management plans include project specific occupational health and safety plans including working procedures and monitoring checklists in compliance with applicable PS2 requirements and local regulations.

Workers Engaged by Third Parties:

The Company would outsource to 3rd party contractors some of the project related activities, such as security, housekeeping, landscaping, waste collection. Through contractual conditions and HR policy (ESAP item #3), the Company will ensure that its human resource (HR) provisions extend to the O&M contractors and their sub-contractors with clear guidelines on labour performance consistent with the company’s HR policy and IFC PS2 requirements.

Resource Efficiency:

Water Supply: Water will be used for restaurants and food court tenants’ kitchens, for general washings, toilets, firefighting and irrigation of garden/green areas. The water received at the project from municipal supply is stored in 4 underground RCC tanks having 875 m3 capacity each which is enough for 20 days of project water needs.

A water treatment system has been designed and installed by a water engineering and contracting company, for water consumption rate of 72 m3/day and includes filtration units for physical conditioning of water; water softening process to protect piping network from scale build-up; chemical dosing for anti-corrosion and micro-organism removal. Treated water is supplied to all restaurants, food courts, washroom, etc. Water received from the municipal authority is metered, however, treated water supplied to the tenants would not be sub-metered by the facility management. The tenants will be responsible to maintain drinking water quality at their respective premises.

Pollution Prevention:

Wastewater Treatment: The project has an on-site sewage treatment system which is operated and maintained by the facility management contractor. The Sewage Treatment Plant (STP) has 100 m3/day treatment capacity with an average follow rate of 4.16 m3/hr and pollution concentration (BOD) of 375 mg/lit. STP is a biological treatment system having activated sludge process, clarifiers, sludge removal and chlorine dosing units and is designed to achieve limit levels of BOD <30 mg/l and TSS <35 mg/l in the treated effluent quality. Treated effluent would be sent back to the American University of Iraq – Sulaimani (AUIS) wastewater system of treatment and recycling for irrigation of the green areas.

Waste Management: Malia Group has a policy on waste recycling and monitor and reports its progress on waste management practices to UNGC. The project has a garbage room in the ground level, which will be cleaned and disinfected on daily basis. Easy access to the garbage room is provided for the garbage trucks to collect the waste once or twice each day for disposal at municipal landfill. Hazardous waste (used oil, batteries, among others) will be disposed as per local requirements.

The Company will develop and implement through facility management contractor a project specific waste management plan as described under ESAP item #1 in compliance with the Group’s recycling and waste managing policy and IFC PS3 and EHS Guidelines.

Pesticide Use and Management: The Company, through facility management contractor, is responsible for disinfection and pest control in common areas; while each individual tenant is responsible for own store and kitchen. The Company will include in EHSS plans prohibition of using products that fall in WHO Recommended Classification of Pesticides by Hazard Class Ia (extremely hazardous) or Ib (highly hazardous) at restaurants, food courts and other commercial areas.

Energy Efficiency &GHG Emissions:

Energy: Electricity to the project would be supplied from local grid, however, the project has also installed gas fired generator as in-house electricity source during grid supply outage. Restaurants will use gas in kitchens for cooking which will be supplied through cylinders. The Project design includes energy efficiency features such as LED lights, energy efficient design, and use of Variable Refrigerant Volume HVAC System. The Company plans to review the provision of solar energy, however, need to assess the workability in view of dust storms.

GHG Emissions: GHG emissions for the Mall are due to electricity and fuel consumption during operations. Based on electricity consumption estimates, emissions will be below 25,000 tonnes of CO2-equivalent annually, therefore GHG reporting requirements does not apply to this project

The Company will develop and implement through facility management contractor a project site specific water and energy resource management as plan as described in ESAP item #1. The company will also develop plan for monitoring and (internal and external) reporting of effluents, and waste generated from the project, as described under ESAP item #1.

Community Health & Safety:

Magma square, being a facility that will be accessed by the university students and general public has been designed and constructed and shall be operated in full compliance with local building codes, local fire department regulations, local insurance requirements and in accordance with an internationally accepted standard.

Magma Square will have minimal health and safety risks to the surrounding communities. Traffic disruption on the main highway, a prime concern, has been addressed with development of a smooth project entrance, large parking areas within the project boundaries and a pedestrian crossing overhead bridge in front of the project for safe access to project. To facilitate travelling of the students to Magma Square the facility management will operate two shuttle services free of cost to the two adjacent universities located at a distance of about 600 meters from the project.

Life and Fire Safety (L&FS):

The L&FS system of the project has been designed and installed by a recognized firm in accordance with internationally accepted standards (NFPA) and local authority codes/standards. The two dedicated underground water tanks are constructed to provide 90 minutes of backup at 1000 gpm of pumping. Fire suppression system and facilities include portable fire extinguishers, sprinkler system, and hose valves connected to internal standpipe system. Smoke detectors and fire alarms are installed at sensitive locations and project has emergency voice alarm communication system. Set of fire pumps include one electric motor driven fire pump designated as the duty fire pump, and one diesel engine driven fire pump designated as the standby fire pump. An electric motor driven jockey pump is provided to maintain pressure in the system during non-operational use of the fire suppression system. Both pumps have 1,000 gpm (3,785 l/min) capacity with the rated pump head of 145 psi (10.0 bar). Field acceptance test of the pumps set installed at the project was conducted in January 2018 as per NFPA2002-16 by the official representative of the pumps’ manufacturer and all the related fire pumps controllers and accessories, who confirmed that the system is ready for normal and automatic operation.

The project has dedicated room for fire emergency panels, electrical panels, 24/7 CCTV monitoring by security personnel. The entire project is equipped with a public address system.

As described in ESAP item # 4, the company will engage a suitably qualified and experienced L&FS professional who will provide a professional certification that the design and installation of L&FS at the project complies with the requirements of the L&FS section of the World Bank Group General Guidelines. The Company will monitor the project’s L&FS system by a qualified professional; monitoring should include maintenance procedures, inspection checklists, L&FS audits, drills (involving all tenants and key stakeholders) and training programs.

Security Management:

To secure the Magma Square premises and to provide a safe environment to all its users the Company has developed a Security Protocol with objective is to align the Facility Management security measures with the outsourced security company practices. It provides a guideline that segregates the security responsibilities between the facility management, the tenants and the outsourced security company and defines the appropriate channel of communication between the parties involved. The protocol forms a project specific security committee, headed by the Facility and Property Management General Manager, includes representatives of outsources security company and tenants. The Security Protocol takes into notification that all the applicable security measures must be tailor made to ensure high level of safety and security and must be implemented with a hospitable approach that suits the project environment.

As described in ESAP Item #5, the Company will perform a Security Risk Assessment (SRA) and will present a Security Management Plan (SMP) in compliance with the requirements of PS4. The SMP will be (a) site specific and comprehensive (b) commensurate to the security risks, (c) describe security risks and detailed response procedures, including those identified in the project’s Security Protocol, (d) aligned with the Voluntary Principles on Security and Human Rights, (e) include relating to security personnel the procedures for hiring, rules of conduct, training, equipping, and monitoring of personnel, and applicable laws, (f) assure that all security personnel, but especially those who will bear arms, are trained and operate consistently with such principles, (g) include a training plan for all employees, tenants and main service providers, and (h) integrated with project’s emergency response plan and other  EHSS management plans. The SRA will also identify any potential risks the security arrangements may pose to those within and outside the project site, including the students of the two adjacent universities. The Company will implement the Security Management Plan and coordinate with outsources security company, tenants, government security agencies and other stakeholders.

 The project aims to provide a distinctive social and entertaining experience to a substantial captive audience of 21,000 students within the American University of Iraq - Sulaimani (AUIS) and Sulaimaniya University campus, an average of 4500 students living in dorms all year round, hundreds of the faculty and university staff members, besides a wide general public. A questionnaire based survey involving 340 students and faculty members of different age groups, conducted by the Company got a very positive feedback on the project concept and design components including services, retails, facilities, food outlets, entertainment opportunities.

As described under ESAP item #1, the Company will develop and implement, with O&M Contractor, a project specific Stakeholders’ Engagement Plan including a grievance redress mechanism (GRM) to lodge and resolve concerns from affected persons/stakeholders/community.