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
If IFC’s investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards
The land occupied by the jetty is located within the confines of the Onne port and was vacant and previously cleared of any vegetation prior to being leased by OIS. Further, the NPA does not allow fishing in the port area. Thus PS5: Land Acquisition and Involuntary Resettlement does not apply to the project and similarly neither does PS8: Cultural Heritage. There are no Indigenous Peoples in Nigeria, thus PS7: Indigenous Peoples does also not apply. The EIA for the jetty included an assessment of the marine environment, and further baseline monitoring was undertaken following a recommendation by MM in their initial E&S due diligence. This monitoring focused on the estuarine habitat, marine mammals and other fauna so as to inform mitigation and monitoring measures as may be required for the dredging activities. The monitoring concluded that there are no endangered terrestrial or aquatic species (fauna or flora) in the areas to be dredged. The area of influence is already heavily intervened by human and commercial activities (other jetties, general port activities). Thus PS6: Biodiversity Conservation and Sustainable Management of Living Resources was also deemed not applicable to the project.

This is Category B project according to IFC’s Policy on Environmental and Social Sustainability. The project is expected to have limited environmental and social impacts that will be site-specific and temporary, and none are expected to be significant. The jetty has been constructed with the environs of an established port, will be operated in accordance with recognized E&S and OHS management systems and assuming due application of such systems, will not pose a significant risk to the surrounding environment or communities.

Key environmental and social issues relate to; i) contractor compliance with the environmental and social management system and associated plans for construction including aspects related to OHS; ii) contractor compliance with Performance Standard 2: Labor and Working Conditions; iii) effective extension of Eleme’s existing Integrated Management System to the jetty operations; and iv) ensuring adequate emergency response for the project components.

Eleme have a robust management systems allied to effective infrastructure and in-house resources to ensure adequate management of project related impacts.

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.

Environmental and Social Assessment

For purposes of this project and in the context of PS1, the fertilizer plant and gas pipeline are considered associated facilities to the jetty. As previously noted, the fertilizer plant, jetty and gas pipeline were all assessed during IFC’s 2012 appraisal. As part of this investment MM also undertook an E&S due diligence of the three activities against the requirements of IFC Performance Standards, the Equator Principles, the World Bank Group Environmental, Health and Safety (EHS) Guidelines and the Industry Sector EHS Guidelines. Subsequently, MM has been monitoring the construction phase of these activities with similar objectives as per the initial due diligence inclusive of compliance relative to the Environmental and Social Action Plan (ESAP) for this investment. Based on IFC’s appraisal including MM’s E&S due diligence and ongoing E&S monitoring it is considered that the fertilizer plant and gas pipeline materially comply with IFC’s requirements. Thus E&S performance for these two activities is for the most part not discussed further in this ESRS document i.e., the focus is specifically on the jetty. Equally, as outlined in the information that follows, this project also aligns with IFC’s requirements.



In accordance with the national Environmental Impact Assessment (EIA) Decree No. 86 of 1992, an EIA was required for the fertilizer plant, the jetty and the pipeline. Separate EIA’s were undertaken for each activity and following completion, these were submitted to the Federal Ministry of Environment (“FMENV”) for review and approval the process of which included a Technical Panel review meeting. All the EIA’s received approval from FMENV with the jetty being approved on 26 February2013. The EIA’s were reviewed by IFC and MM and identified as being generally complaint with IFC’s requirements. Where gaps were identified, actions to address these were identified in the joint lender ESAP for the fertilizer plant which is regularly reported on and updated for purposes of the ongoing construction monitoring by MM.



Monitoring by MM has been undertaken every six months since project construction commenced with the most recent report being issued in October 2015. A final monitoring visit for the completion of the construction phase will be undertaken following commissioning the fertilizer plant, jetty and gas pipeline. The findings of the MM reports are based upon site visits, engagement with Eleme, construction personnel, and community representatives. The site visit and related activities are undertaken by two specialists from MM, along with two specialists from Oska Jo, a national environmental consultancy i.e., four E&S specialists in total.



Management System / Management Plans

In 2012 Eleme obtained certification against ISO 14001, OHSAS 18001, and ISO 9001, environmental, safety and quality management systems respectively. Certification is undertaken on an ongoing basis by Bureau Veri
tas and the three systems have been incorporated into an Integrated Management System. As defined in the project ESAP for the fertilizer plant, Eleme are required to extend this Integrated Management System to the jetty.



For purposes of construction and as per the fertilizer plant ESAP, Eleme developed an Environmental and Social Management Plan (ESMP) for the jetty. Aside from being compliant with PS1, the ESMP defines; i) roles and responsibilities for the management of environmental, social, OHS issues, and human resources; ii) procedures / work instructions for these aspects where necessary; iii) mitigation measures for impacts identified via the project EIA; iv) monitoring requirements to ensure the EPC contractor and subcontractors comply with the requirements of PS2: Labor and Working Conditions; v) training requirements to ensure the ESMP is implemented by Eleme personnel accordingly; and vi) training requirements on environmental and OHS issues for employees involved in construction. In addition, Eleme contractually required the EPC contractor for the jetty to comply with the ESMP and ensure that sub-contractors had suitable management systems in place to control environmental and OHS issues accordingly. Further, as per the fertilizer plant ESAP, the EPC contractor was contractually required by Eleme to align their management systems with ISO 14001 and OHSAS 18001 and implement a suitable Health, Safety and Environment (EHS) Plan for the project. All of the above requirements have been monitored on an ongoing basis by MM and the performance of Eleme and the contractors has been deemed satisfactory in that the necessary systems and plans were developed and appropriately implemented, and contractual compliance ensured accordingly.



Organization Capacity & Training

As part of Eleme established environmental, health and safety management system, there are departmental heads for the individual disciplines defined that are supported by staff dedicated to the respective departments. The Environmental Head is supported by an Environmental Engineer with staff allocated to waste management and monitoring. There is also a set of Health, Safety and Environment (HSE) committees (eight in total) on the site. These committees meet monthly and every three months there is a meeting of all the HSE departmental representatives and Head of Departments with the meeting chaired by the Technical Head. The extent to which the approach outlined above will be replicated at the jetty is still to be confirmed given the ESMS for the jetty’s operation phase is currently being developed. While it will be similar, it is not anticipated to be as detailed given the operations at the jetty will have substantially less risks and potential impacts than the petrochemical complex and fertilizer plant. Current staff providing EHS support at Eleme will be available for support at the jetty, however JVC will have a full time EHS representative on site. The adeq
uacy of the approach will be assessed during the next MM visit and Eleme will implement recommendations to enhance this if required.



Eleme has a dedicated training center with a Training Manager and three support staff. A training schedule is defined annually and, on average, 13 training sessions are convened per month. Aside from compulsory HSE courses, every two years all staff are required to attend a training course on fire safety and emergency response. Further, as defined in the human resources documentation, each staff member is required to undertake a minimum of 40 hours of training every two years. This will similarly apply to personnel associated with the jetty operations.



For purposes of overall construction management Eleme appointed an Environmental Manager, an Environmental Engineer, a Health and Safety Manager and a Health and Safety Officer all of whom report directly to the Technical Director; the latter reports to Eleme Chief Executive Officer. In addition, there is a Community Relations Manager (construction) who reports to the Head of HR and Community (operations) who reports directly to the Chief Executive Officer. These individuals are tasked with implementing the ESMS referred to above, along with oversight of the EPC contractor and sub-contractors EHS performance. The number of LES staff focusing specifically on EHS matters has varied during the construction phase, dependent on the number of personnel on-site. At the peak of construction LES had four EHS Officers, one site nurse, two first aiders, six traffic controllers and eighteen security persons. The roles and responsibilities for the various staff are defined in the EPC contractors EHS plan. Sub-contractors may also have designated EHS staff, and where this is not the case, LES staff provide oversight of EHS issues. Thus there has been and continues to be sufficient expertise and capacity to manage EHS issues throughout construction and this conclusion is supported by MM’s findings.



LES’s EHS plan includes a training plan and there is training matrix to support this. Implementation of the training plan is assessed by MM during the regular monitoring visits.



Emergency Response

Given the nature of their operations, Eleme has a robust approach to emergency response. There is a Fire Department with a staff complement of 24, 18 of whom are qualified firemen. The department has three fire engines, an emergency response vehicle, water tender, two mobile foam trailers, three multipurpose trucks and a hydraulic lift platform. For purposes of the jetty while this has been constructed with the necessary firefighting equipment and infrastructure, it will be able to call on Eleme for support in the event of an emergency. Further, Onne Port Complex has two fire stations that can provide assistance in the event of an emergency, and an agreement is being developed between Eleme, Intels (Other Port terminal) and the NPA in the port complex whereby they wi
ll provide assistance if need be, and vice versa. As per the project ESAP for the fertilizer plant, an emergency response plan is required for the jetty prior to commissioning and this is to be incorporated into the project’s overall Integrated Management System. The adequacy of this plan will be assessed during MM’s next visit.



Monitoring & Reporting

For operations at Eleme a detailed monthly HSE and fire report is compiled that provides information on activities to be undertaken in the forthcoming month, training completed, patients treated in the on-site medical centre, safety statistics, plant level HSE meetings convened, workplace monitoring concluded, ambient air quality and point source emissions monitoring, monitoring results from the waste water treatment plant and findings from any audits undertaken. This report is presented at the monthly HSE meetings and distributed to all the departmental heads and senior management. The ESMS for operations of the jetty will define the monitoring and reporting requirements for this activity, however it will follow a similar format to the above and equally will align with the requirements of ISO 14001 and OHSAS 18001. Subsequent to commissioning of the fertilizer plant, Eleme are then required to commence annual reporting to IFC on E&S performance via an annual monitoring report and this will include activities associated with the jetty. In addition, as per the lender requirements there will be independent E&S monitoring during the operational phase of the fertilizer plant, inclusive of the jetty; these reports will also be submitted to IFC.



The reporting requirements during construction are defined in the ESMP for this phase allied to the monitoring requirements to ensure compliance of the various contractors with the plan. In addition, the regular monitoring reports by MM provide a review of progress relative to the ESAP allied to a comprehensive tracking system against which all E&S issues identified during the site visits are monitored e.g., open, pending, closed. These reports are made available to the lenders and Eleme as a basis to assess and review the project’s alignment against the lender’s requirements and the fertilizer plant ESAP.

Huma Resource Management / Conditions of Employment

Eleme employs 727 workers in total, mostly from local communities; the total number of women employed is 44. In addition, there are 840 contracted workers who provide services related to catering, security and cleaning amongst others which includes a sizeable number of women. Once the fertilizer plant is operational, some 300 additional personnel staff will added to the company’s payroll along with 41 contracted workers. The jetty will employ a further 30 individuals on the payroll in addition to 67 contracted workers.i.e., via JVC, the joint venture between Eleme and OIS. An overview of Eleme’s approach to HR is presented below, given this will similarly apply at the jetty; confirmation thereof will be assessed by MM during the next monitoring visit.



The minimum age for employment in Nigeria is 18 years and the company employs no individuals under this age; typically the minimum age is 21 years at Eleme.



Eleme has a Human Resources Policy and the associated employment procedures and employment conditions are defined via this documentation. In addition, Eleme has a collective bargaining agreement with the Union of Petroleum and Natural Gas Workers for senior staff and there is a similar agreement with the National Union of Petroleum Gas for junior staff. The agreements define the approach to remuneration, policies related to training and medical cover, life insurance, disciplinary procedures, grievance mechanism (including allowance for anonymous reporting), leave availability, various benefits provided to workers such as loans, allowances and subsidies, along with the retrenchment mechanism. The company has an Ethics Policy that contains provisions for non-discrimination in hiring, evaluation, promotion, compensation and other employment related decisions. The company’s employment procedures also apply to contractors who are also unionized. All employees and contractors have a signed letter of employment. Overall the company’s employment conditions comply with this Performance Standard.



As per the ESMP for the construction phase this was to include a monitoring requirement to ensure compliance of the EPC contractors with PS2. In addition, as part the ongoing MM monitoring this aspect was reviewed. In accordance with Memorandum of Understanding signed by all EPC contractors involved in the boarder project i.e., fertilizer plant, jetty and pipeline, there is a focus on maximizing local employment opportunities and the average for all activities to date is 67% of employment from local communities. Ongoing review of the jetty project indicates all workers are employed and paid in accordance with national legislation.



No accommodation on-site is required for the project, though review of this aspect related to other activities indicates compliance with IFC’s requirements. LES has provided an adequate canteen area on-site along with sufficient ablution facilities.





Occupation Health and Safety

At Eleme current operations OHS is managed via implementation of the Integrated / OHSAS 18001 management system and Eleme have been awarded a 5-star with sword of honor rating by the British Safety Council. The manager of the Safety Department is supported by safety engineers with one engineer available per shift. Each Shift Manager is responsible for safety and they are assisted by a safety representative. There is a comprehensive set of safety procedures and all hot work needs to be approved by the Fire Department. Induction training is undertaken for all staff and contractors; job specific training is undertaken based on a task risk assessment which is completed for all jobs; and there are regular tool box talks per shift. Personal Protective Equipment (“PPE”) is made available to workers and contractors alike with the availability based on the task description and the Safety Department assesses the quality of all PPE prior to acquisition. Contractors are required to comply with Eleme’s safety requirements and each contractor has a safety representative that reports to the Eleme Safety Manager. Since 2007 – 2013 there has been one lost time injury (LTI) annually aside from 2010 when there were two LTI’s along with two fatalities (the latter being the result of a traffic accident); since 2014 to date there have been no LTIs. Minor injuries are also recorded along with near misses and the company has initiated an incentive scheme to encourage workers to report near misses such that corrective actions can be implemented accordingly.



Eleme has an on-site medical center equipped to deal with any medical emergency. The center is managed by a doctor and has a total staff complement of 22 individuals which includes another doctor, nurses and paramedics; the center has two ambulances. If necessary, medical cases may be transferred to government or private hospitals in Port Harcourt. Prior to being appointed all candidates for a position within the company are subject to a full medical examination and undergo annual medical examinations. In addition, there are specific health surveillance programs focused on workers involved in certain tasks, for example those that may be exposed to vibration and radiation. Monthly noise and radiation exposure surveys are undertaken at predefined points through the site, and the level of volatile organic compounds is assessed along with various other workplace parameters. Eleme also provides voluntary testing for HIV/AIDS and free anti-retroviral to workers and contractors.



As noted and as per the fertilizer plant ESAP, Eleme’s Integrated Management System will be applied to the jetty as well and there will be dedicated resource person to ensure effective implementation.



LES manages OHS on-site via their EHS Plan. This includes a training plan for employees there are toolbox talks prior to every shift as verified via a review of training records by MM. Monitoring
by MM also indicates good use of PPE and application of signage. In the October 2015 report, MM reported that they have “confidence that LES has adequate EHS systems and procedures in place and that these are being appropriately implemented”.



While there is the ability to treat first aid cases on-site, should the need arise, employees can also be taken to the government operated hospital which is located near the port, or to the Eleme clinic. As of October 2015 approximately 0.53 million man-hours had been worked on the project and there had been no fatalities, no lost-time injuries and nine first aid cases. This positive OHS performance corresponds with the broader construction activities, including the plant and the pipeline, whereby some 16.5 million man-hours had been worked on all three activities at this time and there had been no fatalities, one lost time injury, 22 first aid cases and no road traffic incidents.

Power requirements for the jetty are limited and will be provided via three 15 MVa diesel generators (two will be operating and one will be standby) which are located in a covered area; the fuel storage supply tank is bunded. Electricity will be used in the offices and related facilities, for lighting, and for transfer of products to and from vessels either via conveyors (urea) or cranes located at the jetty.



Based on the estimated diesel usage for the generators (estimated at some 1,750,000 million liters per annum) and the fuel usage associated with the transfer or urea from the fertilizer plant to the jetty, the total annual estimated CO2 emissions for the project are 7,809 tons per annum.



Total estimated water usage is 25 m3 per day and will be supplied via an on-site borehole. This water will be treated via sand filters for use in the fire water system and general on-site use such as for wash-downs. Further treatment of the water is provided such that it may be used for potable use in the ablution facilities and offices. The water quality will be monitored with the requirements defined via the ESMS for the jetty.



Sewage will be treated via an on-site treatment plant as will potentially contaminated stormwater from loading bays, access roads and the open storage areas for break bulk cargo and containers. Treated water discharge will be monitored to ensure alignment with the requisite standards (the monitoring program will be defined in the ESMS) with the outfall into the port’s stormwater management system.



Urea will be offloaded from vehicles into hoppers in a fully enclosed area and then discharged into a warehouse. From this point it will be reclaimed and then transferred via covered conveyors into vessels. Potential impacts of the jetty on ambient air quality are considered to be limited given the nature of activities and that these will occur in an airshed where there are other more significant sources. However, an ambient air quality monitoring program will be defined in the project’s ESMS and will be implemented and the results compared against that defined in the baseline monitoring undertaken as part of the project EIA. The monitoring program will inform an assessment of the relative contribution of the jetty and the eventual need to identify and implement additional mitigation measures.



Limited domestic and hazardous waste (e.g., used oil for equipment lubrication, oil and paint containers etc.) will be generated at the jetty and these will be stored in dedicated covered storage areas on-site and disposed of via licensed waste management companies.



During construction day to day environmental management issues are managed via LES’s EHS plan. Based on MM’s monitoring to date, no environmental incidents have occurred.



All waste originating from the construction activities is segregated on site and transported to authorized landfills by approved waste handling companies. In addition, records are
maintained of waste disposed, copies of the license for the landfills were waste is disposed of and the waste carriers registrations/certificates.



Thus far MM has noted varying performance by LES in respect of housekeeping and ensuring contained storage of waste materials. However, upon raising the issue with the contractor the issues have been readily addressed. As per the EHS Plan, dust suppression measures are regularly implemented.



As per the fertilizer plant ESAP, a Marine Dredging and Monitoring Plan was developed and reviewed by MM to confirm its adequacy. Dredging of some 270,000 m3 was undertaken in December 2015 by the Bonny Chanel Company Nigeria Ltd; this company undertakes dredging on behalf of the NPA and have been allocated two designated areas for the dredged material i.e., some 5 km downstream from the jetty on the right hand bank and another is approximately 15 km offshore. These locations will be used for the disposal of dredged material during maintenance dredging of the jetty berths.

There are no communities located in proximity to the jetty which is situated within the confines of the Onne port, a key hub for the Port Harcourt area. Thus the potential direct impacts on communities as a result of activities at the jetty are limited. Urea will be transported via enclosed vehicles to the jetty and, as defined in the fertilizer project ESAP, a traffic management plan is required for this activity prior to commissioning. This plan will define driver and vehicle requirements and measures to enhance public safety along the transport route.



For purposes of construction and as per the contractual requirements, LES was required to maintain an ISO 9001 accredited quality management system and detailed design specification are defined in the contract documentation. Independent review of construction has been undertaken by Eleme to ensure construction has occurred in accordance with the original design standards and specifications. The British Standards have been applied to most aspects of civil construction such a maritime structures, concrete design, structural design, and foundations, amongst others. Seismic guidelines specific for port have been applied as has NFPA 307 which is specific to fire protection for marine terminals, piers and wharves.



Security at the Eleme facility is maintained via security guards employed by Eleme and the police. The security guards employed by the company are unarmed and recommended by local community leaders and a full screening is undertaken for any criminal records. The majority of security guards are local residents which reduces the risk of conflict between the security guards and the local communities. The police have a unit stationed full-time at the site that provide armed security and also provide armed escorts when road travel is required by expatriate staff beyond the site or when workers need to access areas off-site where security may be a concern.



Eleme’s Security Department prepares a monthly report on health and safety that includes statistics on any instances of security safety violations and conflicts between security staff and local communities; to date no such instances have been reported. Security at the jetty will be provided via unarmed security guards that have already been trained, screened and recommended by local community leaders. During construction the EPC contractor provided security via unarmed guards on-site.

Eleme has constituted a Project Advisory Committee (PAC) to manage stakeholder engagement and project grievances for the entire petrochemical complex. As per the agreement with the Committee, the EPC contractors are required to maintain communication with communities through the Eleme/PAC. The PAC includes members of the six host communities, the local government council and a representative for the King of Eleme (the head of the council of chiefs made up of leaders of ten clans that are located in the Eleme local government area). The PAC is headed by the Commissioner for Chieftaincy, Community Affairs and Local Government.

Public consultation activities were undertaken part of the respective EIA’s, including that for the jetty. Project information was disclosed in advance of all public consultation and information was also disclosed to local communities through their representatives.

In addition to the above, there were public forums and stakeholder interviews. The public forums were meetings in which the project was described and stakeholders were afforded an opportunity to provide their views on the project and ask any questions relating to it. Stakeholders at the public forums included representatives of the King of Eleme, local government, youth leaders, women’s leaders and officials of the FME, the Rivers State Ministry of the Environment and the police. The forums and meetings were held in English, and meeting minutes taken. The meeting minutes indicate that questions raised by stakeholders were addressed by Eleme. The results of the public forum for the jetty were presented in an article in a local newspaper (Inside Eleme, 16-22 July 2012).

A Stakeholder Management Plan inclusive of a grievance mechanism for the fertilizer plant, jetty and gas pipeline has been developed for construction and operations. Review by MM indicates that it is adequate and ongoing implementation is monitored by MM. No community or social incidents have been reported in respect of any activities. All EPC contractors including LES have community liaison officer and maintain a grievance log and any grievance is channeled through the PAC before Eleme is engaged. Based on MM’s findings all “community grievances are resolved satisfactorily, speedily and in accordance with IFC’s PS’s”.

IFC’s ongoing interaction with Eleme confirms that the company has built and maintains strong relationships with communities. As noted by community leaders and representatives during a meeting with MM in August 2015, the level of commitment demonstrated by Eleme to stakeholder engagement and community investment is commendable and without precedent in the area.

Broad Community Support:

Company contact details:
Hemant Deshmukh
Fertilizer Operations Head
Indorama Eleme Petrochemicals Ltd
Eleme Petrochemicals Complex, Eleme
East -West Expressway, Eleme
PMB-5151, Port Harcourt, Rivers State
Nigeria
mailto:hdeshmukh@indorama.com.ng

Mobile: +234:815-041-6928

Broad Community Support is not applicable for this project