Environmental and Social Assessment and Management System

Aqua’s operations to date along with those currently envisaged do not require an environmental and social impact assessment. Management of E&S risks and impacts allied to those associated with operating the vessel on the rivers where they are located is undertaken via application of the International Safety Management (ISM) Code, an international standard for the safe operation of ships and for pollution prevention.  Both vessels are independently audited against compliance with the code by organizations qualified for such and formal certificates issued in this regard.   The “Aqua Mekong” is audited by Sing-Lloyd, established marine surveyors based in Singapore, and the certificate was issued on 5 July 2016 and is valid until 31 May 2021.  The “Aria” is audited by the Peruvian national coastguard and the certificate was issued on 17 December 2016 and is valid until 19 December 2021.   Certification is subject to ongoing compliance with the Code with annual verification required; both vessels have valid certificates in this regard. 

In accordance with the IMS Code, each vessel has a Health, Safety and Environmental Protection Policy which provides a commitment to; safe practices on board; ii) ensuring safeguards against identified risks, iii) continually improving performance; and iv) complying with relevant rules and regulations. The Policy is signed off by the relevant Country Manager.  This policy along with a “Labor Policy” and “Drugs and Alcohol Policy” are exhibited in areas of the vessel dedicated to workers only. Each vessel has a detailed ISM manual and supporting set of procedures to give effect to these policies and other aspects related to ensuring safe travel by the vessels and risk management.  Elements of these manuals and procedures are defined in the sections that follow.

As defined in the ESAP, Aqua will be required to obtain and maintain certification against the ISM Code for all new vessels and regularly report such information to IFC.

Management Programs 

The ISM Manual and accompanying set of procedures provide a detailed set of audit checklists, reporting, permit and control requirements relating to all operational aspects to ensure safe passage and well managed operating conditions for the vessel and associated equipment. This includes various requirements related to environmental, health and safety management as outlined below.

Organizational Capacity and Competency

There are Technical Managers based in Phnom Penh, Cambodia and Iquitos, Peru respectively whom are responsible for oversight and implementing the ISM Code for each vessel. The responsibility also includes following up to ensure compliance issues are closed out and equally for ensuring insurance related requirements allied to implementation of the respective vessel’s maintenance schedule.  Both vessels have 2 captains who are generally on board at the same time (may be periods when there is only one captain for example during leave periods).  These captains are required to have the appropriate licenses for the jurisdictions in which they operate and equally undergo annual refresher training.  The captains are supported by a first and second officer.  Engineering related aspects on board are managed by a Chief Engineer and there are supporting engineers. Remaining staff are all trained in their respective functions. 

The company is in the process of appointing a Technical Manager / Fleet Superintendent in Singapore to oversee construction / upgrades of new vessels.  A review of the individual’s curriculum vitae indicates he is well qualified for the position and has been trained and involved in marine engineering in various positions.   As agreed with the company, the superintendent person will also be responsible for ensuring; i) a coordinated approach to obtaining, in the case of new vessels, and maintaining in the case of existing vessels, the IMS Code; ii) ensuring all necessary license and permits as applicable are up to date; and iii) ensuring a consistent approach to fleet maintenance activities.  This will facilitate focused oversight at the corporate level for ensuring vessels are maintained in accordance with the ISM Code and Class requirements where applicable and good international industry practice.  Thus, the company is to submit to IFC written confirmation that the superintendent roles and responsibilities are contractually defined as per above. In addition, the company will also clearly define the responsibilities for each worker involved in the ongoing implementation, monitoring, reporting and document control related of all aspects of the ISM Code and define these in an agreed procedure.  Thereafter, the company will; i) amend the existing job description for applicable workers to reflect their responsibilities as outlined in the procedure; and ii) include the requirement for compliance with the associated procedure as a Key Performance Indicator in the relevant employment contracts.  These requirements are defined in the project ESAP.  

During construction / upgrade of vessels the company appoints an experienced owner’s representative to ensure these are built in accordance with the agreed designs.  In addition, the insurer’s representative/surveyor for structural aspects, including the hull and machinery, undertakes regular inspections.

Emergency Preparedness and Response

In accordance with the ISM Code, each vessel has a detailed emergency response plan which defines the approach to 21 differing scenarios that could occur.  In addition, there is a procedure for on-shore personnel which outlines the actions they should take including that related to communications. Scenarios defined include vessel grounding, fire/explosion, collisions, man overboard, steering failure, abandoning ship amongst others.   Annually, the ship undertakes an emergency response scenario drill for a major incident e.g., fire or explosion, department.   In addition, prior to every cruise a drill is undertaken for other incidents considered more limited in nature.  The layout of emergency exits is also displayed in the staff working area.   All staff are trained in emergency response and there is a first aid team as part of every cruise.   There is also a paramedic on board for all cruises, though at the time of IFC’s visit the “Aqua Mekong” was seeking a replacement paramedic.   Prior to commencement of the cruise there is a safety briefing with all passengers during which the approach to emergency response is discussed. 

There are fire extinguishers throughout the vessels and those observed on the “Aqua Mekong” had been recently serviced.  In addition, there are smoke alarms in all areas including in the individual guest cabins linked to an alarm panel.  In addition, there is emergency related signage throughout the vessel. Aside from extinguishers, there is also dedicated firefighting equipment such as breathing equipment and firefighting suits. The vessels are also fitted with rescue rafts and life vests for all crew and passengers.  As per the ISM Code there is a monthly and annual checklist for firefighting equipment.  Both vessels are equipped with fire hoses and have a dedicated emergency generator for pumping water.  The generator is tested before every cruise.

In July 2016 the “Aqua Amazon”, another vessel previously owned by the company experienced an explosion during refueling.  This resulted in loss of the vessel and 5 crew and 2 personnel involved in refueling at the time. Further details on this incident are provided below. As per the ISM Code accidents, near misses and corrective actions taken as a result are recorded.  To ensure a robust approach to this Aqua will enhance the assessment of all accidents and nears misses, ensuring that root causes are identified and a team comprising appropriate country specific and headquarters staff review the occurrence and agree on corrective actions to be implemented to avoid a repeat. This is defined as a requirement in the ESAP.

Monitoring and Review

Aside from auditing in accordance with the ISM Code, the insurers also undertake regular audits. The ISM Manual defines requirements for internal and external auditing and reporting and there are various requirements related to reporting on mechanical faults and repairs.  Monthly monitoring of water quality on board and waste water discharges is undertaken by independent laboratories and in Peru this includes aspects related to food safety.  Every week there is also an operations report sent from Cambodia and Peru to the head office in Singapore which includes aspects related to environmental / risk management.  

  Human Resources Policies and Procedures

The company employees 64 individuals in Cambodia, 84 in Peru and 14 in Singapore.  Of these 41 are females.  All workers are permanent employees and there are no contract staff.

The company has a Labor Policy and Employee Handbook that applies to operations in all countries.

Working Conditions and Terms of Employment

All workers have a written contract with the company that defines their remuneration, working hours and when they are paid.  The maximum number of hours worked is 48 hours per week.  All workers are paid above the minimum wage in the respective countries.   Workers receive annual leave, maternity leave, sick leave and where they work on a public holiday, may receive another day leave in lieu of this.  All workers have health and accident insurance and may use either private or public healthcare, as they choose.

Workers’ Organization

In accordance with national law in the countries in which the company currently operates, workers can join unions should they wish. In addition, the Labor Policy refers to workers being paid in accordance with a collective bargaining agreement should it apply.  However, no workers have joined unions to date.   To formalize this aspect the Employee Handbook will be updated to note that workers are able to join unions and enter into collective bargaining agreements; this requirement is defined in the ESAP.  

Non-discrimination and Equal Opportunity

The Employee Handbook notes that workers should not exercise any discriminatory acts due to beliefs, religion, sex, race and opinion. To ensure alignment with this Performance Standard, this statement will be enhanced in the Employee Handbook to be a formal policy on non-discrimination and equal opportunity. The policy will include specific reference to measures to address harassment, including that related to women.  The requirement for this policy along with the need to communicate the policy to workers is defined in the ESAP.

Retrenchment

No retrenchment is anticipated and rather the company is expanding operations.

Grievance Mechanism

There is no formal grievance mechanism included in the Employee Handbook and rather company representatives noted the approach to addressing grievances is typically informal.   Thus, the Employee Handbook will be updated to include a grievance mechanism, and this will also facilitate anonymous reporting.  The grievance mechanism will then be formally communicated to all employees.  These actions are defined in the ESAP. 

Protecting the Work Force

All workers employed are 18 years and above (generally most employees are older than this) which is the minimum age for workers in all countries of operations; the age of workers is verified with their identification documents at the time of employment.  There is no forced labor associated with any of the company’s operations and there is reference to this in the Labor Policy. 

Accommodation

In Cambodia there are 35-40 crewmembers on board during a cruise, while in Peru there are 27-29 crew members. The actual number for women workers on the cruise varies, though in Cambodia there are approximately 11 women while in Peru some 23 workers are women.   The cabins for staff on board vary in size from 6 berths to a single berth for the captain.  Each worker has their own bed for the duration of the trip and there are separate ablutions facilities for males and females. The accommodation provided is temporary in nature and complies with the minimum requirements regarding quality and basic services.  

Occupational Health and Safety

The company has a detailed set of procedures to manage occupational health and safety, several of which are required in accordance with the ISM Code.  The latter include signage requirements and procedures related to managing hot work, cold work, working in confined spaces, welding activities and working at heights, amongst others.  Aside from activities related to maintenance and repair, day to day occupational health and safety risks associated with activities on the vessels are very similar to that of a hotel.  

As noted there are first aiders as part of the crew that undergo training and there is a paramedic on every cruise.  The company noted that other than that detailed below, no incidents have occurred previously that would have resulted in lost time, though there is no formal approach to monitoring and recording incidents.  Thus, as per the ESAP a procedure and tracking mechanism will be developed for recording incidents.

All workers undergo medical checks annually as per the company requirements.

As referenced, in July 2016 there was an explosion during refueling of the “Aqua Amazon” in Peru.  This resulted in the vessel sinking, the loss of 7 lives (5 crew and 2 associated with the fuel supply company) and 8 crew were also injured.  No passengers were on the vessel at the time. A detailed assessment of the accident was performed by independent evaluators. The cause of the explosion was deemed to be the result of a spark (possibly from generators) igniting fuel fumes during the refueling process in the engine room.  The latter was the refueling of petrol (as opposed to diesel for the vessel engines) into storage tanks.  This petrol is for skiffs that transport passengers to shore for excursions during a cruise.   Following the incident fuel is no longer stored on vessels but rather in the skiffs themselves and in small containers that provide fuel that is sufficient for one cruise only.   Further, these containers are refueled on shore and then transferred to the skiffs.

Workers Engaged by Third Parties

As noted, the company hire its employees directly.  Contractors associated with company operations on a regular basis include those undertaking pest control and maintenance activities.  In addition, when a new vessel is commissioned, or an existing vessel upgraded, the company contracts with contractors for such work.  For regular contractors, the company will contractually require such companies to comply with the Aqua’s OHS practices and procedures should such be applicable.  In respect of work associated with new vessels, the company will require compliance with national OHS legislation.  These requirements are defined in the project ESAP.

   Resource Efficiency

Due to the nature of the operations there are limited opportunities to promote resource efficiency.  other than ensuring the engines and machinery on board are regularly maintained.  The new vessel to be constructed in Peru may have solar panels fitted to the roof.

Water

Water is extracted from the Mekong and Amazon Rivers and then treated in water treatment plants on the respective vessels.  The “Aqua Mekong” has a sophisticated plant that include initial filtration, neutralization, reverse osmosis and then UV treatment.  The plant on the “Aria” involves filtration through gravel and then activated carbon followed by UV treatment.  The water quality on both vessels is monitored monthly and includes samples from a guest cabin and the kitchen which is then sent for testing by an independent company. 

GHG Emissions

The total fuel usage by the vessels is some 810,000 liters of diesel and 63,500 liters of petrol per annum (based on the previous 12 months of operations).  This fuel usage allied with electricity use per annum for the respective offices results in approximately 2,400 tons of GHG emissions per year.  Going forward the company will report on fuel and electricity usage per annum taking into account the expanded operations. 

Wastewater Treatment

Both vessels have a package water treatment plants for the treatment of all waste water generated on the vessels i.e., from ablution facilities, kitchen bar area and the laundry.  The water is discharged directly to the respective rivers. In Cambodia the sludge is disposed of by the company that undertakes the regular maintenance of the associated plants.  In Peru the sludge is treated with chlorine and then discharged to river twice a year when the tanks are cleaned as there is no company with the capabilities for the collection and disposal of the sludge  As defined in the ESAP, the company will undertake a feasibility study to define a suitable disposal method for the sludge generated by the vessel in Peru Water quality monitoring is undertaken every month and the results thereof indicate general compliance with national standards for such effluent.

Solid Waste Management

Solid waste is separated into paper, glass, plastics and domestic waste and stored in dedicated and sealed containers at the back of the vessels.  At the end of every cruise the waste is collected by private companies for disposal and there is a waste manifest which details the amount of waste disposed of.  This approach is in accordance with the company’s Procedure for Pollution Prevention as required by the ISM Code. 

Hazardous Materials

As noted petrol for the skiffs is no longer stored on the vessels but rather in small containers on the skiffs themselves and the quantities are only sufficient for the duration of the cruise.  Diesel is stored in fuel tanks built into the vessels.  Gas for the kitchens is provided in cylinders and stored in dedicated ventilated areas and the system are certified for such use.  The gas systems have emergency cut off valves and the “Aqua Mekong” has an alarm in the kitchen which indicates if gas is leaking from the cylinders.    Hazardous material such as paints and greases are stored in dedicated contained areas in the auxiliary machinery room, as are 25-gallon drums of oil. 

The Procedure for Pollution Prevention clearly defines the approach to the disposal of wastes from the engine rooms and oily bilge water.  In the case of the former this is not specifically relevant to the vessels in that such water is limited.  Used oil which is the only hazardous waste generated by the vessels is collected and sold to recyclers in the respective countries of operation.

   Community Health and Safety

In undertaking activities that may could impact on communities these are designed to ensure proper mitigation. The primary focus thereof is when travelling on waterways either in the vessels themselves or in skiffs.  The vessels are all under the control of experienced captains who are suitably qualified and are familiar with the waterways in which they operate.  As noted, all accidents and near misses are recorded. In October 2018 a fisherman was killed when his boat collided with the “Aqua Mekong”.  The incident was investigated by the Vietnamese authorities and it was concluded that the Aqua Mekong Capitan followed agreed navigational procedures and no negligence or criminal responsibility was imposed on him.  However, an agreement was reached with the family of the deceased whereby compensation was paid to them by the company.

When operating skiffs, the speed of the boats is maintained at a maximum of 10 knots to limit their wake and thus not impact on community members who may be fishing or bathing on the edges of the river.  Where there is the potential for direct engagement with communities e.g. tour of a village, this is discussed and agreed first with the community; refer below to the Stakeholder Engagement section for further information.    

Generally, the vessels only navigate for 8 hours a day and limit the extent of travel during the evening.  During the evenings when not travelling the vessels either anchor near the shore or tie up to the shoreline.

To the extent possible, food is prepared in the companies’ professional shore kitchen prior to being stored on board.  The kitchens have a set of standard procedures to ensure food safety.  This includes regular monitoring of fridges / chillers to ensure correct temperature control.  For the operations in Peru the government inspectors undertake an inspection of the kitchens and this includes sampling to confirm the level of cleanliness.

Infrastructure and Equipment Design and Safety

Aside from ongoing auditing in accordance with the ISM Code, the vessels are independently surveyed by the insurers for the hull and machinery; this is a separate activity to that related to the ISM Code certification. While the surveyors may vary, the most recent survey reports for the insurance company reviewed for both vessels were undertaken by Inserv, specialists in marine technical services. The frequency of the audits is defined by the insurance company, though generally these are on an annual basis. The audits focus on all aspects of the vessels including staffing, navigation, infrastructure, machinery and fire safety.   Both vessels also have a detailed maintenance plan which includes supplier requirements as applicable e.g., for the engines and generators.  The vessels are subject an annual maintenance review during the low tourism periods and this may involve taking vessel out of the water.

Security Personnel

There are security personnel on the vessel in Peru whom are armed; there are no security personnel on the vessel in Cambodia.  In Peru the personnel are police from the area that are assigned to work on the vessel and there is a formal contractual agreement with the police department in this regard.  They may though be supported by off-duty policemen as well who work on the vessel during their periods of leave.  Since the start of the collaboration with the Peruvian police no-incidents have occurred.

  Part of the cruise activities include interaction and visits to specific communities living alongside the Mekong and Amazon rivers.  These may include observing community activities such as fishing, observing cultural events or walking visits through communities.  These are all facilitated by local guides who are from communities in the areas in which the company operates. Such engagement is undertaken in agreement with communities whereby the company interacts with community leaders / representatives to obtain their support when planning the itineraries for the cruises.  

Various social responsibility programs have also been initiated by the company related to community support e.g., improving the quality of water supply in villages and education, and conservation efforts e.g., facilitating donations to support the Amazon Manatee.

Interaction with communities as outlined above is undertaken in an informal manner in that the approach is not documented and there is no structured method of identifying differing stakeholders and the most appropriate mechanisms to engage with them. Aqua recognize this and acknowledge that a Stakeholder Engagement Plan (SEP) defining the approach to engagement with all stakeholders will be useful considering the environments in which they operate.  Thus, as defined in the ESAP, the company will develop and implement a SEP applicable to all operations and this will include a grievance mechanism.  

  Contact Person: Kim Loan

Company Name: Aqua Expeditions PTE LTD

Address: 10 Jalan Kilang, #06-04 Sime Darby Enterprise Centre, Singapore 159410

Email: kle@aquaexpeditions.com

Phone: +65 9723 1534

Facsimile: