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 corporate office and the nursing homes are/will be rented from third parties, located in residential areas with established connections to public water, sewage, and electricity utilities. It was therefore considered that PS5 (Land Acquisition and Involuntary Resettlement), PS6 (Biodiversity Conservation and Sustainable Natural Resource Management), PS7 (Indigenous Peoples), and PS8 (Cultural Heritage) do not apply to this project.

The proposed investment qualifies as a Category B project as defined by IFC’s Environmental and Social Sustainability Policy (2012) because of potentially limited environmental and social impacts that may result from the expansion and operation of the existing facilities, all of which can be avoided or mitigated by adhering to generally recognized good practices and design criteria.
Key E&S issue and risks associated with the project include: (i) the assessment of E&S issues, risks and potential liabilities associated with the existing operations of Cefas in Argentina and the corrective actions needed to ensure compliance with legal and other requirements including IFC Performance Standards and the applicable World Bank Group (WBG) EHS Guidelines, (ii) extending company’s corporate E&S management and monitoring systems to all its operations and facilities in Argentina; (ii) extending company’s corporate HR policies and procedures to the facilities in Argentina to ensure consistent management of labor and working conditions, and OHS procedures and practices; (iii) potential retrenchment of workforce associated with shutdown and dismantling of the facilities, (iv) monitoring and management of air emissions, waste and wastewater and hazardous materials, and iv) and community health and safety in case of potential emergencies.

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 (E&S) Assessment and Management Systems

As part of the process to evaluate Cefas operations (Olavarria, Padre Bueno,
Decavó, Quilpo y Zapala) Calidra is conducting E&S audits to determine (a) the
current status and needed mitigation actions for the plants, its associated
quarries and the distribution centers and (b) the impacts and needed
mitigations from the sourcing/transportation. The audit will also assess
compliance of the operations with IFC’s E&S requirements and define actions to
address any gaps identified. Copy of the impacts, mitigations, and
implementation timetables for items (a) and (b) above, will be submitted to IFC
as per the ESAP.
Calidra is committed to inform IFC of any additional initiative (i.e., new
acquisitions, plants expansions, close down operations, etc.) that they
implement, during the life of the project, and to submit an assessment of the
mitigations as well as the proposed mitigations, prior to those initiatives
being implemented, ascertaining that those initiatives will operate in
accordance with the IFC requirements. As part of Cefas ESMS upgrade, Calidra
will develop a land acquisition procedure, copy of which will be submitted to
IFC as indicated in the ESAP.

Policy

Calidra has an overarching sustainability policy and principles that guide the
way environmental and social (“E&S”) issues are managed across Calidra’s
operations based on the IFC PSs. Cefas has developed a sustainability approach
based on values of integrity, excellence, responsibility and respect; and
principles such as driving the business in a responsible and ethical way,
personal and professional excellence, and superior quality and competitive
prices, among others. As part of this project, Calidra will extend the
principles of its Sustainability policy enhance as needed, Cefas current
principles in accordance to the IFC PSs.

Management Programs

Calidra’s policies cascade down from the corporate level to each plant in
accordance to its Sustainability Policy and operational procedures which
specify the company’s operating parameters such as zero effluents, air emission
concentrations, workplace safety conditions, community engagement, among
others. The above policies are supported and complemented at the plant level by
a suite of procedures and/or manuals. In addition, to effectively manage the
resource efficiency aspects of its operations, Calidra has developed
performance indicators and targets (i.e., m3 water/ton of product, energy
used/unit lime produced, unit lime produced/unit raw material extracted, etc.)
Cefas plants have EHS Management systems in place, which establish management
commitment, assessment of environmental impacts, training, monitoring, and
reporting. The systems also include occupational health and safety (OHS) risk
prevention; air emissions, solid waste, and liquid effluent management. Cefas
plants are preparing its systems as it is considering applying for the ISO
14001 and OHSAS 18001 certifications.
For purposes of the proposed project, Calidra anticipates that it will
implement the same approach to the operations in Argentina as per the actions
identified in this summary.

Organizational Capacity and Competency

Calidra has in place a Corporate Sustainability Department that reports
directly to the Chief Executive Officer (CEO). The Sustainability Manager has
a team of qualified environmental, health and safety (EHS) specialists based at
each of the plants, who oversee the EHS performance of the operations.

Most of Cefas plants have qualified personnel to oversee the EHS aspects of the
operations reporting directly to the plant General Manager. The Chile
distribution center has contracted qualified personnel to oversee the EHS
relevant aspects of its operations.
For the purposes of the proposed project, Calidra will designate a qualified
EHS specialist to oversee the operations in Argentine supported by existing EHS
organization and report directly to Calidra’s Corporate Sustainability
Department thus ensuring compliance with local legal requirements and Calidra’s
corporate EHS policies and requirements including IFC Performance Standards
(PSs), the applicable elements of the World Bank Group (WBG) General
Environmental, Health, and Safety (EHS) Guidelines; the EHS Guidelines for
Cement and Lime Manufacturing; the EHS Guidelines for Construction Materials
Extraction; and the attached ESAP. Copy of the CVs of these specialists as well
their terms of reference will be provided to IFC as indicated in the ESAP.
Emergency Preparedness and Response

Each of Calidra operations has its own emergency response plan (ERP). Key
elements of these plans include procedures for internal/external
communications, response organizations/contacts, outline of emergency scenarios
and response actions, list the needed emergency response equipment, key
contacts, responsible staff, etc. The company also conducts training and
emergency response drills for employees and contractors in periodic basis.

Cefas has developed emergency response plans, it has fire brigades available at
all times, and has safety fire prevention measures in place for all plants. For
the project, as part of extending its corporate management system described
above and in ESAP, Calidra will evaluate and enhance, as needed, the emergency
response plans and procedures and systems for the Cefas facilities (such as
well-trained fire-brigades, emergency response drills, fire prevention/response
equipment such as alarms, sprinklers, signals, hydrants, dedicated fire water
tank, extinguishers throughout the operations sites, etc.) to align them with
its corporate standards and practices. Copies of the emergency response
preparedness improvements as well of the emergency response plans for all
plants and distribution centers will be submitted to IFC as indicated in the
ESAP.

Monitoring, and Review

For Calidra, EHS monitoring is an integral component of its E&S management
program and is conducted throughout the life of the operations to provide
ongoing understanding of the plants EHS conditions and help determining any
needed preventive and/or corrective actions. As part of its E&S management
systems, Calidra has also identified KPIs, which are the means to assess the
EHS performance of its operations and to benchmark the EHS performance among
Calidra plants.

Calidra and Cefas periodically reports the monitoring results to the local
environmental authorities as per regulatory requirements. Going forward for the
project, as indicated in the ESAP, Calidra will develop a monitoring and
reporting procedure including standard KPIs for the operations in Argentina,
which will be consistent and compatible with its corporate monitoring systems
and KPIs. This will help the company to consolidate the E&S performance and
sustainability related KPIs from across all its operations

Calidra’s labor policies cover provisions relating to non-discrimination and
equal opportunity; wages, benefits and occupational health and safety. As in
its current operations and for this project, Calidra and Cefas are committed to
hiring the majority of workers locally, as appropriate. After including Cefas
operations, it is anticipated that the total number of Calidra direct employees
will be increase from 1,900 to about 2,300. Female employees constitute 11% for
Calidra and 6% for Cefas of their corresponding total workforce, across all
levels.

Human Resources Policies and Procedures

Calidra has a Human Resources (HR) department at corporate level that is in
charge of implementing the company’s HR policy and systems for all its
operations including ethics code, training protocols, work conduct, employee
competencies models, mechanisms to handle and resolve employees and contracted
laborers’ grievances, etc. These policies and procedures are fully compliant
with local requirements and IFC’s PS2 requirements.

Cefas also has HR policies in place in accordance to local requirements. They
establish in general, training, induction, human capital procedures, work
conduct, etc. For the operations in Argentina, Calidra will align the Cefas HR
policies with its own corporate policies and submit the update as indicated in
the ESAP.

Working Conditions and Terms of Employment

Beyond the compliance with in-country labor laws, the company provides
additional benefits to its employees (i.e., extended health insurance to
employees’ families, educational support, loan programs for employees, etc.)
The same approach which is currently applied in Calidra will be maintained for
the operation in Argentina.

Workers’ Organization

Calidra and Cefas employees have the right to and freedom of association, and
to bargain collectively as per the Mexican and Argentinean labor laws
respectively. In general, their operations enjoy an overall positive labor
climate. Quilpo operates with three 8-hour shifts and it currently has 123
employees, of which 60% are unionized. The Padre Bueno plant operates with
three 8-hour shifts and it currently has 184 employees, of which 76% are
unionized. The Olavarria plant operates with three 8-hour shifts and it
currently has 70 employees, of which 80% are unionized. The Zapala plant
operates with two 8-hour shifts and it currently has 28 employees, of which 75%
are unionized. The distribution centers have both direct and contracted
workers. Resistencia and Cordoba, each has three direct hired workers; Campana
has one direct hired and five contracted workers; and Chile has 22 employees of
which 14 employees work in the warehouse, it also has four temporary workers.

Non-discrimination and Equal Opportunity

As indicated in Calidra and Cefas HR policies al hiring and promotions are
merit-based. There is no child or forced labor at any of its operations. The
company also ensures that the contract laborers are at least 18 years old.

Retrenchment

Retrenchments occurred prior to this proposed project, and more recently, the
eighteen quarry contracted workers retrenched at the Quilpo plant, have been
handled in accordance to the Argentinean labor law.

As part of this project, and as indicated in the ESAP, Calidra will shall
incorporate into its HR policy/procedures a formal statement regarding its
retrenchment policy expressing commitment and shall accordingly prepare a
retrenchment plan, in line with IFC’s Good Practice Note on Managing
Retrenchment and PS2 requirements.

Grievance Mechanism

Calidra has established a worker’s grievance mechanism that defines
communication channels, including anonymous submittals, and includes the option
of submitting grievances by mail, phone and in person. The company maintains a
database with information regarding grievances results of which are reported
quarterly. The grievance mechanism is communicated to all employees and is an
integral part of the human resources policy.

For its operation in Argentina, Calidra will establish a similar worker’s
grievance mechanisms (GMs) for each of the operations in accordance with IFC
PS2 requirements. The mechanisms will include documented procedure articulating
(a) methods of communication about the mechanism to employees (i.e. existence
of the grievance mechanism); (b) means to present the grievances, process of
resolution, etc.; (c) process of receiving and registering grievances/
complaints including anonymous grievances; (d) assessment and categorization of
grievances; (e) prioritization and hierarchy of grievances and response time;
(f) guidelines for resolution and response of grievance; (g) responsible
personnel in charge of resolution; (h) documenting grievance/resolution; and
(i) periodic monitoring of grievances. The GMs will also address issues related
to contractors’ activities and will be submitted to IFC as indicated in the
ESAP.

Occupational Health and Safety (H&S)

Calidra has an OHS management system in place to coordinate all relevant OHS
aspects of its operations. Key OHS programs include assessing its own and
contractors’ employees’ general and occupational health, evaluating
work-related risks and preventing occupational impacts, workplace monitoring,
maintaining records of accidents and incidents, and implementing corrective
measures to reduce negative EHS impacts. It has appropriate medical services at
all its operations and conducts regular medical check-ups including those for
employees working in health risky areas (i.e., noise, dust, ergonomics, etc.)
It also provides personnel protective equipment (i.e., uniforms, respiratory
protective devices, boots, etc.) which are required to be used at all times.

Cefas subcontracts the H&S monitoring of its operations; at each of its plants
has a safety commission established with participation of workers and
management. The employees of the Argentinean operations will continue to be
provided with and required to use personal protective equipment (hard hats,
dust mask, hearing protection, etc.). Cefas conducts workplace monitoring and
periodical medical checkups to assess the status of its labor force related to
workplace related illnesses. In addition, the Padre Bueno plant has contracted
a medical service for its employees that operates within premises 3 times a
week for periods of 4 hours.

Calidra’s EHS training programs includes EHS induction, job hazard analyses,
emergency preparedness, fire prevention, collection of accident and near miss
statistics, proper use of PPEs, disposal of residues, etc., as well as training
on environmental regulations; wastewater treatment plants operation; working in
confined spaces/at heights/electrical jobs, etc., which are delivered on as
needed basis. The plants in Argentina have an overall sound training program,
however as part of this project Calidra will assess and improve those as needed
in accordance to the training approach already in place at its operations in
Mexico.

Over time Calidra has substantially reduced the number of accidents at its
plants; this resulting from the implementation of the procedures from the
robust ESMS management system in place at all its plants. Cefas does not
maintain records the accidents and incidents of its operations. However,
Argentinean Ministry of Labor representatives conduct periodic audits to
ascertain the overall occupational safety of their operations.

For the operations in Argentina, Calidra will conduct detailed H&S audits and
identify the required mitigations to enhance the occupational health and
industrial safety of these operations including good housekeeping practices,
installation of safety guards in moving equipment, installation of fire
prevention alarms and eye showers in working areas, definition of H&S
monitoring sites, better signaling, procedures to oversee the H&S conditions of
subcontracted personnel, etc. Copy of these H&S assessments will be submitted
to IFC as indicated in the ESAP.

Calidra’s quarrying and lime manufacturing activities give rise to emissions of
noise and vibration that can have a negative impact on the health and
well-being of workers as well as surrounding communities. Thus, Calidra
installs operational controls and local measures such as noise suppressors,
regulation of distance between noise sources and operators, isolation of noise
sources, scheduling of blasting activities, and the provision of ear protectors
to employees working in areas where noise and vibration limits are exceeded.
Calidra will identify and install the needed noise measures to ensure all
Argentinean operations comply with the applicable IFC requirements including
those for ambient and workplace noise. Copy of these measures will be
submitted to IFC as indicated in the ESAP.

Workers Engaged by Third Parties

For all its plants, Cefas also subcontracts services such as those for the
quarry blasting operations, transport, security, etc. Even though Cefas
currently has procedures to manage the relevant EHS aspects of its contractors,
as part of this project, Calidra will enhance these procedures, as needed, to
ensure contractors compliance with the EHS requirements (i.e., EHS inductions,
conduct job risk assessments for risky activities, medical exams, confirmation
of compliance with local labor laws, etc.); comply with the local labor laws;
and establish monitoring procedures to oversee their EHS performance. As
indicated in the ESAP, Calidra will submit copy of these procedures to IFC.

Resource Efficiency

As Calidra, in Mexico; Cefas, in Argentina, owns and operates all its quarries;
however Cefas contracts the blasting operations for the raw material
extraction. The overall handling, reclamation, and safety aspects of the
quarries at Calidra’s Mexico operations are handled at corporate level through
an Integrated Quarries Management Plan, with local EHS presence at each of the
quarries. For the sound management of the quarries in its Argentinean
operations, Calidra will ensure there is proper
identification/collection/removal of any flora and fauna present, collect and
reuse the layer upper of the soil; establish procedures to prevent soil erosion
(protecting earrings, drainage vertical and horizontal and planting of grass);
manage drainages in the areas of operation and along the roads of access,
ensure proper storage and handling of explosives, noise/dust control, optimize
the exploitation approach aiming to maximize the use of its raw material, etc.
To that effect, it will assess the current approach being applied at the
quarries in Argentina to reconfirm the availability of the resource and
enhance, as appropriate, the overall exploitation scheme of these quarries.
Calidra will submit copies of the quarry optimization plans for each of the
quarries in Argentina, as indicated in the ESAP. These plans will also include
quarry closure and rehabilitation plans for all quarries, and notably those are
being shut down.

Water is of paramount importance for Calidra operations and a key input in the
hydrated lime production process, representing approximately 465 lt/ton of
calcium oxide. It is also used for cooling, washing aggregates, and cleaning
plants and equipment, including final product delivery trucks. Thus, Calidra
has developed programs and initiatives to increase water efficiency such as and
recycling, particularly at those hydrating plants located in water scare areas
by recovering the water vapor releases to the atmosphere during the hydration
process. It is also implementing rain water collection systems at several of
its plants.

For the operations in Argentina, Calidra will look to optimize the water
consumption of the hydrators. Copies of the water balance as well as water
optimization measures for each of the plants in Argentina will be submitted to
IFC as indicated in the ESAP.

Calidra also has a program in place to control and reduce the energy
consumption of its plants. For the operations in Argentina, Calidra will
develop and implement an energy consumption monitoring system and begin
implementing energy optimization measures. Calidra will submit to IFC a copy of
the energy optimization plan for each of the plants as indicated in the ESAP.

Water

At the Quilpo plant, the water is obtained from a well located at approximately
40 m from the Quilpo River for which the authorization is in process of being
obtained; once obtained, Calidra will provide a copy to IFC. The 120,000 l/d of
water obtained from the well is used for production as well as for water supply
to the nearby community located next to the plant. The plant uses bottled water
for drinking purposes. Overall, it consumes approximately 5,000 l/hr, of which
approximately one third is used in the hydration process.

The Padre Bueno plant process water is obtained from a well, located within the
course of the nearby Cienaguita creek, approximately 4 km distant from the
plant. It consumes approximately 100,000 liter/month. Cefas already conducted a
hydrological study of the area but it has yet to assess the ecological flow
conditions of this creek. As part of this project, Calidra will conduct an
ecological flow assessment of the Cienaguita Creek to determine whether there
are or there will any impacts to the hydro ecology downstream from the plant’s
water intake. Its drinking water is bought from an authorized company.

The Olavarria plant obtains water for its process from an off-premises well
located at approximately 600 m from the plant site. The plant takes 10 m3/day
for its domestic use. For its industrial use, it pumps out 100 m3/d from an
artificial lagoon about 170 m from the site. In addition, also for industrial
use, it has two concessions to take between 800 m3/d to 1,900 m3/d from the
“Don Antonio” reservoir located 500 m from the plant and between 500 m3/d and
1,200 m3/d from the “Cantera Loyola” reservoir located 1.5 km distant from the
plant. All the water used is authorized by the local environmental authorities.

The Zapala plant obtains the process and drinking water from two wells, for
which the authorization request is being submitted. Once obtained, Calidra
will provide a copy to IFC. It currently consumes 200 l/ton of product. The
well water is also used for irrigation. The water for domestic use is obtained
from the municipal system.

Energy Consumption and GHG Emissions

Lime kiln’s operations are a significant source of carbon dioxide (CO2) from
its process as well as from its fuel consumption. By optimizing its operations
by replacing obsolete technology with efficient kilns (vertical Maerz kilns),
Calidra is reducing/avoiding CO2 emissions. All Calidra current operations have
installed efficient Maerz kilns and the company measures the CO2 emissions
produced. As previously indicated, the plants in Argentina will undergo
improvements to begin the reduction on energy consumption. As part of the
proposed project, the company will install a new 400-tons natural gas/pet coke
Maerz kiln at the Padre Bueno plant. The specific energy consumption of this
kiln will be within the benchmark values established in the WBG EHS Guidelines
as it is a state of the art technology.

The operations in Argentina currently generate approximately 300,000 tons of
CO2 eq per year.

Air Emissions and Ambient Air Quality

The main air emissions generated during lime manufacturing include particulate
matter, carbon monoxide, carbon dioxide, sulphur dioxide, and nitrogen dioxide.
To control these emissions, the plants ought to maintain air pollution control
devices operating continuously in kilns, silos and solid material transfer
points. Silos and transfer areas for raw materials/intermediate and final
products ought to be also controlled to prevent the release of fugitive dust
emissions. When packaging areas are manual or semi-automatic, those typically
generate fugitive emissions which affect workplace conditions.

Cefas has in place certain air pollution controls at its plants; some stack,
transfer points, and fugitive emissions are currently controlled. As part of
this project, Calidra will conduct an assessment of the air pollution control
needs (kilns, grinders, silos, transfer points, packaging, etc.) of the plants
in Argentina, and it will install the needed air pollution control devices and
it will enhance the packaging areas of the plants to reach compliance with the
applicable local regulatory requirements and WBG EHS Guidelines. Specifically,
for the Quilpo plant, it will identify interim air pollution control actions as
this plant is anticipated to be closed down once the accumulated rejected
hydration material is fully processed. As indicated in the ESAP, Calidra will
submit to IFC reports indicating (a) the air pollution control systems to be
installed at each plant, and (b) implementation time tables to ensure
compliance with the IFC requirements.

As Calidra’s plants that currently conduct ambient air quality monitoring, the
company will also establish an ambient air quality monitoring program for the
plants in Argentina. As part of this program, it will establish the locations
of sampling points, frequencies, sampling analyses, etc., as indicated in the
ESAP.

Wastewater Treatment

The lime operations typically generate process, storm water, and domestic
wastewaters. The Quilpo plant domestic liquid effluents generated are disposed
in septic tanks and the process liquid effluents generated by the hydration
process have been released openly into a nearby area, property of the plant. As
indicated earlier, these discarded material is expected to be reclaimed as part
of this project.

The domestic liquid effluents generated from Padre Bueno plant are collected,
removed by an authorized company, and finally disposed in the municipal
treatment facility. The process liquid effluents generated are treated in an
onsite wastewater treatment plant and internally used for irrigation in the
plant green areas. The sludge generated is collected and handled as a solid
residue.

At the Olavarria plant, the wastewater is used to wash and humidify the
material, the remaining water from this operation is returned to the lagoon,
thus there are not process liquid effluents discharged. The domestic liquid
effluents are disposed in septic tanks.

The Zapala plant uses process wastewater to capture the fine particulates in
the wet filter. The filter collected material is then used in the pelletizing
process, thus there is no generation of liquid effluents or sludge. The
domestic liquid effluents generated are disposed in the municipal system.

As part of this project, Calidra will improve the wastewater treatment systems
for all Argentinean plants and provide reports indicating (a) the wastewater
treatment systems chosen to be installed at each plant to further enhance the
quality of the wastewater used for their internal purposes, and (b)
implementation time tables which will ensure compliance with the IFC
requirements as indicated in the ESAP.

Solid Waste Management

Calidra has a solid waste management system and all current plants have
residues segregation programs. The program ensures that once segregated, the
hazardous and non-hazardous wastes are properly disposed following local
requirements in authorized locations. Specifically, the hazardous wastes (i.e.
waste oils, materials contaminated with the oils, wastewater treatment plant
sludge, etc.) are properly collected, stored and send for final disposal by
authorized contractors. Calidra continues making efforts to reduce the
generation of solid wastes. Specifically, it reinjects back into its kilns the
particulates collected in the air pollution control filter from the kilns.
Calidra also records and reports total hazardous and nonhazardous waste
production volumes from operational sites.

As indicated above, the solid residue accumulated at the Quilpo plant from the
hydrator rejects will be reclaimed at the plant prior its permanent shut down,
as part of this project. In addition, the approximately 2,400 tons of rejected
lime material generated at the Decavo plant which has been accumulated on
premised will be transferred to the Padre Bueno plant, where it will be
reclaimed by mixing it with final product and selling as a road conditioning
material.

Currently, Cefas collects its solid wastes and have they disposed in authorized
landfills. The hazardous wastes are collected and stored prior being sent to
an authorized final disposal site. Calidra will extend its solid waste
management system to the plants in Argentina, for which, it will develop a
solid waste management plan including the management of rejects from the Quilpo
and Decavo plants, as well as enhance practices for storage and final disposal
for the solid and hazardous wastes generated at the Cefas plants. Copy of this
plan will be submitted to IFC as indicated in the ESAP.

Hazardous Materials

The Quilpo plant has three (one 30 m3 and two 20 m3 each) diesel aboveground
storage tanks and two underground storage tanks which are no longer in use. It
has a 1,800-tons capacity open area to store pet coke and it is authorized to
use a maximum of 11 tons of explosives. The Padre Bueno plant has two (50 m3
each) diesel aboveground storage tanks, a 500-tons capacity open area to store
pet coke and it is authorized to use a maximum of 13 tons of explosives. The
Olavarria plant has two (42 m3 and 30 m3) diesel aboveground storage tanks and
a 3000-tons capacity open area of to store pet coke. The Zapala plant has two
(1400 l combined) diesel aboveground storage tanks. All hazardous materials
have been approved for use and proper handling (i. e., secondary containment,
secure storage, etc.). The local environmental authorities conduct annual
audits related to handling/storage prior granting the authorizations.

Community Health and Safety

Calidra believes that a strong collaboration between driving and
contractor-safety practices is needed to prevent accidents and potential life
losses. Thus, in its effort to minimize traffic accidents, Calidra has
developed and implements Safety Transportation Management Plans at its plants
to implement industry good practices, to report safety performance, and to
assess incidents and injuries reduction over time by outlining practices for
drivers, their managers, and transport management contractors.

Cefas uses, both own and contracted, trucks to transport (a) the raw materials
from the quarries to the plants and (b) the products from the plants to the
distribution centers. As part of this project, Calidra will develop and
implement Safety Transportation Management Plans for the Argentinean operations
as indicated in the ESAP.

As all quarries are distant from populated areas it is not anticipated there
will be impacts from the quarries operations. Aiming to reduce disturbance at
nearby communities, Calidra will conduct periodic noise monitoring programs at
the facilities’ boundaries to ascertain the projects compliance with the local
standards and WBG EHS guidelines. As needed, it will establish measures to
minimize noise disturbance to nearby communities.

Community Exposure to Disease

It is not expected that the projects in Argentina will cause any additional
exposure to communicable diseases.

Emergency Preparedness and Response

The emergency response plans to be updated for the Argentinean operations will
include the details about the communication to and training of the nearby
communities related to response to emergencies, emergency drills procedures,
involvement of the local authorities in the community preparedness planning in
the event of a major accident, etc.

Security Personnel

For purposes of persons and physical security at all its operations, Calidra
contracts non-armed private security services from specialized firms in the
sector. Security personnel are screened for criminal backgrounds and are
provided with training in the use of force. The plants do not rely on local
public armed forces for any services or support. Calidra implements security
policies and procedures commensurate to the operations’ risks and provides
security personnel codes of conduct and training to ensure appropriate conduct
with neighboring communities.

Cefas contracts private security companies to safeguard its personnel and
property. As part of the project, Calidra will develop a Security Management
Plan as indicated in the ESAP that will include background checks, training of
private forces in accordance to the Voluntary Principles towards employees and
the neighboring communities, rules of engagement as well as monitoring and
reporting plans.

Stakeholder Engagement Plan

For the potentially affected communities and based on the work being conducted by Cefas with the nearby communities, Calidra will develop an stakeholder engagement plan (SEPs) whereby the communities will be given the opportunity to learn more about the project and proposed mitigations. Copies of the SEPs for each of the plants will be submitted to IFC as indicated in the ESAP.

Consultation

Community relations staff to be designated will meet periodically with community members in the directly and indirectly affected communities. The community relations team will also meet with the municipal leaders in the nearby municipalities as appropriate. The general plant managers will ensure proper implementation of the SEPs.

External Communications and Grievance Mechanisms

Calidra’s corporate philosophy recognizes that contributing to the community development is both good business and good ethics. Specifically, Calidra and Cefas give preference to hiring locally and to use local suppliers of goods and services whenever possible, it sponsors education programs within the communities it operates, and makes construction materials available to local municipalities and education centers at discount prices, among many other programs. Calidra is committed to continue with the implementation of these program, as appropriate, as part of this project for the operations in Argentina.

Calidra has a community grievance mechanism system scaled to the risks and adverse impacts of its operations to receive and facilitate resolution of affected communities’ concerns and grievances for all its operations in alignment with PS 1 requirements. The system is structured to resolve concerns promptly, using an understandable and transparent consultative process that is culturally appropriate and readily accessible, and at no cost and without retribution to the party that originated the issue or concern.

Cefas will develop community grievance mechanisms for all its plants and distributions centers including (a) methods of communication about the mechanism to communities (i.e. existence of the grievance mechanism), (b) means to present the grievances and process of resolution, (c) process of receiving and registering grievances/ complaints, (d) assessment and categorization of grievances, (e) prioritization and hierarchy of grievances and response time, (f) guidelines for resolution and response of grievance, (g) responsible personnel in charge of resolution, (h) documenting grievance/resolution, and (i) periodic monitoring of grievances. Copy of the community grievance mechanism for all its plants and distributions centers will be submitted to IFC as indicated in the ESAP

Ongoing Reporting to Affected Communities

As the Quilpo Plan will be shut down in 2 years, Cefas has been proactively working with the community to avoid an increase in population nearby the plant to avoid any future economic hardship for the community, and as part of its corporate social responsibility, is actively supporting the current neighboring community to relocate to other locations and minimize any potential impacts on their livelihoods. To that effect, it has signed an agreement with the community in which the 23 remaining families have agreed they will move out between now and 2017. Cefas is working with the local government to find sound alternatives for them. Specifically, Cefas is considering offering the land where the government would build the homes who these families with additional support the government would acquire them.

Calidra’s as well as Cefas’s corporate philosophies recognize that contributing to the community development is both good business and good ethics. Both gives preference to hiring locally and to use local suppliers of goods and services whenever possible, they sponsor education programs within the communities they operate, make construction materials available to local municipalities and education centers at discount prices, and promote micro enterprises, among many other programs. Specifically, Cefas channels its community outreach work through its foundation, “Fundacion Valores para Crecer.” Calidra and Cefas investments in local communities are aligned with their values and business objectives. Community investments include educational, cultural, and sports activities; fostering local environmental awareness; and employee volunteering.

Health, Safety & Environment Corporate
Contact Person: Juan Pablo Farina
Company Name: Cefas SA
Email: mailto:jfarina@cefas.com.ar
Phone: +54 9 261 5419847

Quilpo
Contact Person: Mariano Audisio
Company Name: Cefas SA
Address: Escuela Comunidad Quilpo (located within the property of the company)
Email: mailto:maudisio@cefas.com.ar
Phone: +54 9 3549 472 761

Padre Bueno
Contact Person: Fernando Gallo
Company Name: Cefas SA
Address: Hospital Los Berros, ruta 319 s/n Los Berros, Sarmiento, San Juan
Escuela Divisadero, ruta 153 s/n Divisadero, Sarmiento, San Juan
Escuela Cienaguita, Ruta 153 s/n Cienaguita, Sarmiento, San Juan
Email: mailto:fgallo@cefas.com.ar
Phone: +54 9 264 6625047

Olavarria
Contact Person: Roque Terrasanta
Company Name: Cefas SA
Address: Delegación Municipal Loma Negra 54 2284 493000
Centro de Salud Comunitario de Paraje La Providencia
Email: mailto:rterrasanta@cefas.com.ar
Phone: +54 9 2284 66 8481

Zapala
Contact Person: Héctor Acevedo
Company Name: Cefas SA
Address: Centro Integrador Comunitario Caleuche (02942) 421962 P. Moreno s/n - Bo.Antena - Mz.26 - Zapala
Email: mailto:hacevedo@cefas.com.ar
Phone: +54 9 2942 40 2914

Broad Community Support is not applicable for this project

Title	Anticipated completion Date
1. Conduct environment, health and safety (EHS) audits to evaluate Cefas operations at Olavarria, Padre Bueno, Decavó, Quilpo and Zapala facilities vis-à-vis IFC’s E&S requirements and determine (a) the current status and needed mitigation actions for the plants, its associated quarries and the distribution centers and the impacts	12/31/2016
1. Conduct environment, health and safety (EHS) audits to evaluate Cefas operations at Olavarria, Padre Bueno, Decavó, Quilpo and Zapala facilities vis-à-vis IFC’s E&S requirements and determine (b) Implementation of the audit recommendations	12/31/2017
2. Develop a decommissioning plan for Quilpo and Decavo plants including identification of EHS and social impacts and mitigation measures (a) Copy of the Plan	08/31/2017
2. Develop a decommissioning plan for Quilpo and Decavo plants including identification of EHS and social impacts and mitigation measures (b) Decommissioning Completed in accordance with the plan	12/31/2019
3. Identify and implement emergency response preparedness improvements for plants and distribution centers (a) Copy of the improvement of the emergency response preparedness measures	12/31/2016
3. Identify and implement emergency response preparedness improvements for plants and distribution centers (b) Evidence of the implementation of the emergency response preparedness measures	09/30/2017
4. Develop/Enhance emergency response plans for all plants and distribution centers	12/31/2017
5. Develop and implement an EHS monitoring and reporting procedure including standard KPIs for the operations in Argentina, which will be consistent and compatible with Calidra’s corporate monitoring systems and KPIs	12/31/2017
6. Develop and implement Stakeholder Engagement Plans for each of the plants	03/31/2017
7. Develop and implement Community Grievance Mechanisms taking into account applicable IFC requirements for each of the plants and distribution centers (a) Develop the Mechanisms	03/31/2017
7. Develop and implement Community Grievance Mechanisms taking into account applicable IFC requirements for each of the plants and distribution centers (b) Provide evidence of implementation	06/30/2017
8. Update as needed the HR policies for each of the Cefas plants in Argentina to align with Calidra’s corporate HR policies and IFC’s PS2 requirements.	02/28/2017
9. Update Cefas HR policy/procedures by including a formal statement regarding its retrenchment policy expressing commitment and accordingly prepare a retrenchment plan, in line with IFC’s Good Practice Note on Managing Retrenchment and PS2 requirements.	03/31/2017
(a)Develop and implement Employees Grievance Mechanism taking into account applicable IFC standards for each of the plants	12/31/2017
(b) Implement the Employees Grievance Mechanism at the plants	04/30/2017
11. Develop a land acquisition procedure in line with IFC’s PS5 requirements.	11/30/2016
12. Develop EHS contractors’ procedures to ensure contractors compliance with the EHS; comply with the local labor laws; and establish monitoring procedures to oversee their EHS performance	10/31/2016
13. Develop and implement quarry optimization including quarry closure and rehabilitation plans for each of the quarries including EHS improvements as needed (a) Develop optimization and closure/rehabilitation plans	06/30/2017
13. Develop and implement quarry optimization including quarry closure and rehabilitation plans for each of the quarries including EHS improvements as needed (b) Implementation of the plans	12/31/2017
14. Conduct water balance for each of the plants and determine the water optimization programs to be established	12/31/2016
15. Develop and implement an energy consumption monitoring system and begin implementing energy optimization measures for each of the plants in Argentina (a) Develop energy optimization plan	03/31/2017
15. Develop and implement an energy consumption monitoring system and begin implementing energy optimization measures for each of the plants in Argentina (b) Implement Optimization plan	12/31/2019
16. Identify the air pollution controls to be installed and associated timetables for all plants, including Quilpo for compliance with local legal and IFC’s E&S requirements (a) Identify the air pollution controls	11/30/2016
16. Identify the air pollution controls to be installed and associated timetables for all plants, including Quilpo for compliance with local legal and IFC’s E&S requirements (b) Implement the air pollution controls	12/31/2017
17. Identify the wastewater treatment systems to be installed and associated timetables for all plants (a) Identify the treatment systems	12/31/2016
17. Identify the wastewater treatment systems to be installed and associated timetables for all plants (b) Install the treatment systems	05/31/2017
18. Develop and implement a solid waste management plan for all plants including the management of the rejects from the Quilpo and Decavo plants (a) All plants except Quilpo and Decavo	07/31/2017
18. Develop and implement a solid waste management plan for all plants including the management of the rejects from the Quilpo and Decavo plants (b) Quilpo and Decavo	12/31/2019
19. Conduct assessment to identify the needed noise control measures to be established at all plants (a) Identify noise control measures	04/30/2017
19. Conduct assessment to identify the needed noise control measures to be established at all plants (b) Install noise reduction/prevention measures	11/30/2017
20. Develop and implement Safety Transportation Management Plans for the materials and products transportation to and all plants and distribution centers (a) Develop Plan	11/30/2016
20. Develop and implement Safety Transportation Management Plans for the materials and products transportation to and all plants and distribution centers (b) Implement Plan	07/31/2017
21. Develop and implement a Security Management Plan for all plants and distribution centers	03/31/2017