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
PS 5: Land Acquisition and Involuntary Resettlement is not expected to apply, because the company is planning to lease or purchase the land through market based willing-buyer-willing-seller transaction and there will be no involuntary physical or economic displacement.

Similarly, PS6: Biodiversity Conservation and Sustainable Natural Resources Management does not apply because the company’s operations will be located within consolidated agricultural or commercial/industrial zoned areas and no conversion of natural/ critical habitats will take place. No presence of Indigenous People – PS7 - (as defined in the IFC Performance Standards) and Cultural Heritage – PS8 – issues are expected at the proposed site in a well-developed industrial zone in semi-urban / agricultural setting.

However, as described under PS1, once the project location and other details are finalized the company will assess the applicability of PS5 - PS8 and develop the necessary action plan to ensure the compliance with the IFC Performance Standards.

Since this investment will be used to support projects, which are yet to be identified; going forward, the company shall consider all relevant social and environmental risks and impacts, including the issues identified in PS1 through PS8 while assessing any new business opportunities or service models.

Based on the information reviewed by IFC, this proposed investment is expected to have limited E&S impacts which are likely to be site-specific and not significant. Those impacts can be avoided or mitigated by adhering to recognized performance standards, procedures, guidelines and design criteria, as described in the following sections. Thus, this is a Category B project in accordance with IFC’s Environmental and Social Sustainability Policy.

Key E&S issues and risks associated with this project are: Bel Ga Myanmar’s social, EHS and food safety management system and performance; assurance of fair and safe working conditions for company’s employees and contractors; animal welfare and biosecurity management; utilization of equipment and operational practices that maximize conservation of energy, water and process materials, including recycling and reuse initiatives; management of emissions and wastes and their impacts on ambient environment and nearby communities; impacts of transport and warehousing infrastructure and biosecurity issues on the nearby communities.

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 the new facilities to be developed in Myanmar, the company will undertake the environmental and social impact assessment (ESIA) study and develop environmental management plans (EMP) as required by local regulations as part of permitting process.



Moreover, as part of this study and as a condition of IFC’s new investment, the company will also assess the applicability of IFC’s Performance Standards 5-8 for the proposed project activities in Myanmar and develop an action plan as necessary so that the proposed project will comply with IFC Performance Standards. The report for this study and the EMP will be shared with IFC for review, and shall also be publicly disclosed.



- Assessment of Labor and Biodiversity Risks in Supply Chain:



The supply chain of the company’s breeding and hatchery operations comprises of highly specialized items, with limited labor or biodiversity risks as contemplated by the supply chain requirements of the Performance Standards. Also the quantities procured by Bel Ga Myanmar are expected to be rather small and hence it has limited leverage with suppliers.



- Policies, Management Systems and Programs:



Bel Ga Vietnam is in the process of formalizing its existing commitment towards EHS requirements through the development and adoption of an EHS/sustainability policy to supplement the existing policies; while making a direct reference to comply with IFC Performance Standards and WBG general and poultry production EHS Guidelines at existing and planned operations.



Bel Ga Vietnam has developed a comprehensive set of SOPs for all its operations that address the risks and impacts associated with operations. These procedures cover, among others: bio-security protocols, disease prevention and vaccine plans, nutrition management plan, occupational health and safety for workers, water and waste management plans, including hazardous waste, fire safety, etc. Strict implementation of these at all operations is required and monitored, considering the significant bio-security and disease risks at farms. IFC confirmed effective implementation of the above at all the Bel Ga Vietnam facilities visited during appraisal.



Moreover, a documented Hazard and Critical Control Point (HACCP) based Food Safety Management System (FSMS) with focus on good manufacturing practices, sanitation and safety operations procedures (SSOP), bio-security, etc., is being implemented at Bel Ga Vietnam with target for third-party audit and certification for all the 3 facilities by October 2016.



Going forward, as the operations for Bel Ga Myanmar are developed, building upon the policies, procedures and management system documents from its Vietnamese sister operation, Bel Ga Myanmar will develop its own policies and procedures and implement an E&S management system for its own operations.



- Organization:



Bel Ga Vietnam has established a corporate and facility-level structure for the effective
implementation of its EHS policies and management procedures. The expatriate General Director, supported by a Sustainability Coordinator/Management Representative for HACCP FSMS, has the oversight on EHS and food safety issues at corporate level. At each facility, a Production Manager is responsible for day-to-day operational management of EHS and food safety related issues, with support from a qualified and experienced team of supervisors and technicians. Key technical staff has received extensive training at the sponsor’s existing operations in Europe.



Similarly, an appropriate EHS organization will be developed for Bel Ga Myanmar once the company starts its operations.



- Monitoring and Reporting:



Commensurate with limited and site-specific EHS and social impacts from its operations, Bel Ga Vietnam has established corporate and plant-level EHS monitoring and reporting systems and procedures, which are aligned with the local regulatory reporting requirements.



Accordingly, the company monitors several parameters such as: air quality (Dust, SO2, CO, NO2, H2S and NH3), potable water quality, and waste water (pH, suspended solids, BOD, COD, ammonia, phosphate, coliforms). This is in addition to several operational parameters (including those related to animal welfare) in the breeder farms and hatchery, such as: temperature, humidity, CO2 levels, ventilation, lighting etc. All these monitoring reports are regularly reviewed by the company’s senior management.



Building upon these monitoring, reporting and review protocols in Bel Ga Vietnam, the company will develop its own SOP for EHS monitoring and reporting, considering, and responsive to, the specific local regulatory requirements.



- Emergency Preparedness and Response:



Potential incidents that could result in emergencies in the company’s breeding and hatchery operations include disease outbreak at breeding farms and fire. At Bel Ga Vietnam, specific SOPs are developed to address these issues. Farm heads, with the assistance of a specifically assigned staff, undertake regular inspection and scheduled training and drills. In addition, local safety regulatory body annually inspects the company’s fire prevention systems. Similarly, Bel Ga Myanmar will develop its own emergency response plan, following the principles and SOPs developed and implemented in Vietnam, after due customization.

Once fully operational, Bel Ga Myanmar expects to employ a total workforce of 80. These employees are regular employees with full time contracts.



- Human Resource Policy and Management:



Bel Ga Vietnam has articulated its HR policies and procedures, which cover the following: HR planning, recruitment, terms of employment (compensation, benefits), training, labor relations management, grievance mechanism, occupational health and safety, and matters related to biosecurity etc.



In addition to a written contract, all the new employees receive HR induction upon taking up the job, and are given detailed information about the terms of employment and HR policies and procedures.



Bel Ga Myanmar will, for its operations, develop a similar HR policy and procedures manual compliant with the requirements of local labor laws as well as IFC Performance Standard 2. It shall establish its own HR department staffed with qualified HR professionals to implement its HR policies and manage day to day HR related matters.



Training:



Bel Ga Myanmar will be one of the few early entrants in Myanmar poultry industry that will introduce international experience and industry best practices to this rapidly developing country, which, at present, has a limited number of suitably skilled employees. As such, training of staff for developing necessary competence and skills for its operations will be a key priority for the company. For this, the company will develop its training plans, learning from the experiences and using the training policies and procedures from its Vietnamese sister concern.



Bel Ga Vietnam has developed a comprehensive documented training procedure to ensure continuous training at all levels in the company’s farms and hatchery in order to maintain strict enforcement of food safety, biosecurity and EHS procedures. The HR department is accountable for developing and implementing the annual training plan. Every year, based on the analysis of training needs, the HR department in conjunction with the production department develops the training plan for the next year for the approval of Board of Directors. Moreover, during the year, this plan is adjusted in consultation with operations departments, if any specific training needs are identified during the course of the year.



- Animal Welfare, Biosecurity and Occupational Health and Safety:



Key issues for the company’s business are animal welfare, biosecurity and related food safety, which also has a direct bearing on employees’ health and safety. As part of Bel Ga Vietnam’s operational manual, detailed biosecurity and health and safety management protocols have been articulated, including farm layout and design, access controls, quarantine procedures, monitoring and day to day operational SOPs. During the appraisal site visit, these were observed to be strictly implemented. These manuals will be customized and adopted for Bel Ga Myanmar, and similar systems and practices will be impleme
nted.

- Resource Efficiency:



The company’s operations are not resource intensive; the main resource inputs are water and electricity. Still, in line with the corporate philosophy of its European sponsors, resource efficiency is a priority for its operations, as well as for design and construction of all the new facilities where all possible efforts are made to minimize energy consumption.



- Energy & Air Emissions:



For its operations, electricity will be sourced from the grid, while diesel generators will be provided for backup power. Air emissions will be regularly monitored as per the environmental permit conditions and the company’s SOP for EHS monitoring and reporting.



- Water, Wastewater



Water required for its operations of Bel Ga Vietnam, including the daily use for the staff working and living on-site, is sourced from the groundwater wells within the company premises. On an average, each breeder farm consumes about 30 cum/day of fresh water; while the hatchery consumes about half of that.



At the hatchery, a wastewater treatment system is already in place in accordance with the environmental permit conditions. The treated effluent is discharged to the common sewerage system of the industrial zone after chlorination (for disinfection). At the breeder farms, waste water goes to septic tanks and the treated wastewater from septic tank is currently used for spraying the manure generated from the poultry sheds, which improves the composting process and thus the quality of the manure sold. Company has made plans to build a wastewater treatment plant at each breeder farm. The treated effluent from the wastewater plant will continue to be used for spraying the manure for composting, prior to selling it to nearby farmers.



For its proposed facilities in Myanmar, the company will build adequate waste treatment facilities in accordance with its environmental permit conditions, and the treated wastewater will be discharged to sewer system or will be recycled. There will be no discharge of untreated wastewater to natural water bodies.



- Waste Management



Poultry operations generate significant quantities of animal waste, mainly manure, but also including other materials such as bedding. Other solid waste generated includes: waste feed, carcasses, and sediments and sludge from on-site wastewater treatment facilities (which may contain residual amounts of antibiotics, among other hazardous constituents), packaging (e.g. for feed and pesticides), used ventilation filters, unused/ spoilt medications, used vaccination vials and syringes and used cleaning materials.



Waste management at Bel Ga Vietnam’s breeding farms is done as per the SOPs and applicable local regulatory requirements. Manure is composted for 3 weeks to avoid any bacteria in manure (and sprayed with treated wastewater during this time) and then it is sold in bags to farmers for land application as fertilizer. Other waste is sent to municipal collection point as p
er the environmental permit conditions.



The waste from hatchery including egg shells is sent to a licensed contractor. Similarly, hazardous waste is separately collected and categorized (e.g. vaccination bottles, syringe needles), disinfected as needed and sent to the licensed contractors after necessary labeling as per the environmental permit condition.



Similarly, a robust waste management system, compliant with local regulatory requirements, will be implemented by the company once the operations commence in Myanmar.



- Carbon Footprint:



GHG emissions resulting from the proposed project are estimated based on electricity consumption at the company’s facilities, as well as those from the parent stock. The Project’s GHG footprint at full capacity is thus estimated at about 900 tons CO2eq / year using IFC’s Carbon Emission Estimator Tool (CEET), which comprises of both Scope 1 and Scope 2 GHG emissions. Actual records will be used to review amounts of tons CO2 equivalent per year in the future.

The main potential risks related to the community from the company’s operations include food safety issues, the spread of animal diseases at hatchery and breeder farms, and impacts from liquid effluents and air emissions.



The company will take all the precautions and isolate its breeder farms away from human settlements and all the facilities will be designed and operated with zero-wastewater discharge. As such, biosecurity, traffic or other issues do not represent a significant risk for the local population.



- Security Personnel:



As in the case at Bel Ga Vietnam, security personal at the company’s proposed facilities in Myanmar will be company employees. They will not be armed and shall be trained on matters related to life and fire safety, including active involvement in regular fire drills, emergency preparedness and response, first aid, and most importantly, biosafety and quarantine management for all the staff and visitors.

As the company establishes is activities and operations in Myanmar, it will engage with the local communities in the surrounding area through corporate social responsibility activities, and plans to support the communities and other stakeholder depending on specific local situations and needs.

The ESIA for Bel Ga Myanmar will be disclosed once it is ready.

Contact Person: Mr. Kay De Vreese
Company Name: Bel Ga JSC
Address: Loc Son Industrial Zone, Bao Loc City, Lam Dong Province, Viet Nam
Email: mailto:k.devreese@belga.com.vn
Phone: +84 943216265
Facsimile: +84 633710097

Broad Community Support is not applicable for this project

Bel Ga Myanmar(38236) Supervision Disclosure Snapshot – Version 2
Description	Anticipated Completion Date	Status	Comments	Completion Date
Bel Ga Myanmar, as part of its ESIA study for its new facility will undertake a review of applicability of the requirements of IFC PSs together with an action plan for full compliance with IFC Performance Standards (as needed). The ESIA report will be publicly disclosed prior to beginning of construction of the project facilities.	31-Dec-2016	Completed	Completed	10/2/2019
Building upon the policies, procedures and management system documents from Bel Ga Vietnam, develop the policies and procedures (including a sustainability policy articulating compliance with IFC Performance Standards, organization chart and management system manuals) and implement an E&S commensurate to the risks and impacts, for the company’s Myanmar operations.	31-Dec-2017	Completed	Completed	10/2/2019