38784 - CTIF Mobisol Coinvest

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Environmental & Social Review Summary

Project Number

38784

Company Name

MOBISOL GMBH

Date ESRS Disclosed

Oct 11, 2016

Country

Tanzania

Region

Africa

Last Updated Date

Jun 12, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Nov 11, 2016
Signed : Nov 14, 2016
Invested : Nov 15, 2016

Sector

Solar - Renewable Energy Generation

Industry

Infrastructure

Department

Equity Portfolio Management

Project Description

Mobisol is a pay-as-you-go off-grid solar electricity provider operating in East Africa (Tanzania, Kenya and Rwanda). Mobisol’s solar home systems range from 80-200W; as at September 2016, the company had installed over 60,000 solar units with a total installed capacity of approximately 6MW. The company’s operations cover the sales, installation and maintenance of the systems (both done by trained and certified Mobisol technicians) as well as the management of the pay-as-you-go payment system; the manufacturing of solar panels is outsourced to manufacturers in China and Kenya. Mobisol has offices in Germany (headquarters), Kenya, Tanzania and Rwanda, as well as in China (supply and quality control).

IFC is looking to invest $5 million in equity as a part of a co-investment transaction with Investec Africa Private Equity Fund II (Investec Fund II), a fund in which IFC invested $30 million in 2013.

Overview of IFC's Scope of Review

As this is a co-investment with Investec Fund II, IFC’s review of this project consisted of appraising technical, environmental and social information made available by the fund manager; in particular the fund’s environmental and social due diligence report. The fund’s appraisal consisted primarily of a review of the environmental and social documents made available by Mobisol; site visits are yet to be conducted

E & S Project Categorization and Applicable Standard

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
PS5: Land Acquisition and Involuntary Resettlement, PS6 – Biodiversity Conservation and Sustainable Management of Living Natural Resources, PS7 - Indigenous Peoples and PS8 - Cultural Heritage are not considered relevant for this project as the company’s operations do not directly relate to these Performance Standards. No land has been acquired for the company’s activities and impacts on biodiversity, indigenous peoples and cultural heritage are not applicable to the installation operations

This project has been categorized as a category B project in accordance with IFC’s Policy on Environmental and Social Sustainability. The environmental and social risks and impacts associated with this project are limited, site-specific and can be readily addressed through generally accepted mitigation measures as described in this document and the attached Environmental and Social Action Plan (ESAP).

The main environmental and social risks for this project relate to Mobisol’s management of the E&S issues associated with its equipment and installation operations, in particular labor and working conditions of employees and contract workers; waste management; and worker and community safety in relation to installation operations and electrical safety.

Environmental and Social Mitigation Measures

IFC’s assessment considered documentation of Mobisol’s management of its environmental, safety and health performance; compliance with applicable local laws; and stakeholder engagement and disclosure of information about the project and its operations.

Environmental and Social Assessment and Management System (ESMS): Whilst Mobisol has some documents covering the environmental and safety aspects of its operations such as installation manuals, there is no formal ESMS in place for the systematic identification and management of environmental and social risks and impacts associated with its operations. In order to manage these risks and impacts, as indicated in the ESAP action item 1, Mobisol shall develop an ESMS suitable to the scale of its operations and which meets the requirements of applicable local laws and IFC Performance Standards. The ESMS shall include policies, plans, manuals and procedures aligned with ISO 14001. The ESMS shall also incorporate relevant aspects (such as occupational health and safety) covered in the WBG General Environmental Health and Safety (EHS) Guidelines.

Policy: As indicated in the ESAP action item 1, as part of the ESMS, Mobisol shall develop an environmental and social policy which meets the requirements of this Performance Standard.

Management Programs: Mobisol currently has management programs for non-E&S aspects of its operation. For the E&S aspects, as indicated above, Mobisol shall develop and implement a management system; this ESMS shall cover management programs for environmental and social aspects of the company’s operations.

Organizational Capacity: Mobisol shall appoint a Health, Safety and Environmental (HSE) Officer to oversee the implementation of the ESMS. This is covered under ESAP action item 2.

Emergency Preparedness and Response: As part of the ESMS, Mobisol shall develop an emergency preparedness and response plan to manage potential emergencies associated with its operations, in particular, the installation operations. The plan will identify emergency scenarios and the required response mechanisms for addressing these emergencies. All emergency procedures and communication protocols shall be documented in the plan.

Monitoring and Review: As covered in ESAP action item 1 for this project, Mobisol shall define key performance indicators (KPIs) in order to monitor HSE parameters such as lost-time incidence frequency rate and accident free days. The HSE KPIs will include: compliance with legal and regulatory requirements; HSE management system progress report; community complaints and community engagement activities

Mobisol has offices in Germany, China, Kenya, Tanzania and Rwanda, employing a total of approximately 700 employees across the five locations – 120 in Germany, 200 in Rwanda, 350 in Tanzania, 30 in Kenya and less than 10 in China. In addition, Mobisol works with about 200 contractors in Rwanda and 350 in Tanzania that work on a commission basis. The contractor base in Kenya is currently being established.

Human Resources Policies and Procedures: As indicated in the ESAP action item 4, Mobisol shall develop human resources procedures which meet the requirement of this Performance Standard as well as applicable labor laws in its countries of operation.

Workers’ Organization: There are no restrictions to forming or joining unions. Although there are no active unions, workers’ communication with the management is channeled mainly through the Executive Board and the Sustainability Committee. The committee is a company-wide elected group which serves as a communication channel between all staff and the management, responsible for clarification of important decisions and issues of interest amongst employees. The committee meets weekly, together with the CEO, in order to assess current developments.

Non-Discrimination and Equal Opportunity: As part of the HR Policies and Procedures, Mobisol shall develop and implement a formal policy on non-discrimination and equal opportunity to cover all aspects of its operations.

Grievance Mechanism: Mobisol shall ensure the HR procedures incorporate adequate worker grievance mechanism procedures.

Occupational Health and Safety (OHS): Mobisol has installation manuals for the installation of solar panels. It is however noted that these manuals do not adequately cover OHS management and the use of appropriate protective equipment. Mobisol shall develop appropriate OHS procedures for the installation operations phase which are consistent with the requirements of this Performance Standard and local laws in its countries of operation. This has been included as action item 5 of the ESAP for this project. KPIs for this project will include OHS indicators which will be documented as part of the project improvement process. Mobisol shall provide appropriate protective equipment for all its employees including contractors (Mobisol contractors are commission-based technicians and sales agents) on the payroll and provide the required training to ensure that its employees and contractors work in a safe manner.

Workers Engaged by Third Parties: As indicated in ESAP action item 4, Mobisol shall extend its labor policies and procedures to its contractors, including consideration for worker grievance mechanisms and fair working conditions. Mobisol has all its suppliers sign the Ethical Trade Initiative Base Code which is founded on the conventions of the International Labor Organization. Amongst other elements, the code covers freedom of employment; safe working conditions; payment of living wages; non-discri
mination and prevention of child labour.

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan

ESIP Mobisol(38784) Supervision Disclosure Snapshot – Version 2
Description	Anticipated Completion Date	Status	Comments	Completion Date
Environmental & Social Management System: Mobisol shall develop and implement an Environmental and Social Management System commensurate with the scale of its operations and consistent with IFC Performance Standards. The system shall define roles and responsibilities, and other necessary elements (operational procedures, monitoring and reporting requirements) to enable operations to comply with local laws in the countries of operation and IFC Performance Standards. Amongst other elements, the management system will include a policy, an emergency preparedness and response plan, HSE KPIs and related operational procedures.	15-Mar-2017	Completed	Completed	6/1/2018
Organizational Capacity Mobisol shall appoint an HSE Officer to implement the management system	15-Mar-2017	Completed	Completed	6/1/2018
External Communication Mechanism Mobisol shall develop an External Communications Procedure which meets the requirements of Performance Standard 1, to receive and respond to any queries or complaints from members of the public concerning the company’s activities.	31-Oct-2018	In progress	Due date revised as agreed with IFC Client
Human Resources Policies and Procedures Mobisol shall develop and implement Human Resource Policies and Procedures which meet local laws in its countries of operation and the requirements of Performance Standard 2. The documents shall include a worker grievance mechanism and non-discrimination clauses, and will extend to all workers.	15-Mar-2017	Completed	Completed	6/1/2018
Occupational Health and Safety Mobisol shall develop and implement Occupational Health and Safety (OHS) policies and procedures tailored to its installation and maintenance activities. The policies and procedures will include identification of managers/persons responsible for OHS performance, on-going training, maintenance of OHS performance statistics and a mechanism for reviewing deviations from procedures and improving performance.	30-Jun-2017	Completed	Completed	6/1/2018
Waste Management Procedure Mobisol develop and implement a Waste Management Procedure which meets the requirements of Performance Standard 3 for the management of waste solar equipment and other waste streams.	30-Jun-2017	Completed	Completed	6/1/2018
Community Safety Awareness Program Mobisol shall develop a community safety awareness program for educating communities about electrical safety	15-Mar-2017	Completed	Completed	6/1/2018
Traffic Safety Measures Mobisol shall develop and implement a Traffic Safety Procedure which meets the requirements of the WBG General EHS Guidelines for scenarios where multiple company vehicles are active in a populated area for periods of more than a few days at a time.	15-Mar-2017	Postponed	Changed project circumstances mandated a delay of this task

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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Environmental and Social Mitigation Measures

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