Land required for the project consists of two plots (0.12 ha and 0.14 ha respectively), acquired through a commercial transaction by the Company from two local private individuals during 2015-2017. Given that these plots were held by the previous owners for about 10 years with no known issues or use by local communities, PS5 is considered not applicable to this project. The Project is located in an urban area with minimal E&S impacts on local biodiversity and indigenous peoples; hence PS6 and PS7 are not applicable. Through communications with the local authorities, the Company has confirmed that there are no known cultural properties or artefacts on or near the site. PS8 is therefore not applicable to this project.

This residential development project is not required by local laws to undertake an environmental and social impact assessment, given that risks and impacts are expected to be limited to moderate for this sector. The feasibility study for the Project, commissioned by the Company, looked at a number of E&S issues and did not find concerns or issues.

Building on its operations manual, the Company is in the process of developing group-level standard operating procedures on contractor and construction management including labor and working condition aspects, land acquisition and involuntary resettlement of local communities, life and fire safety, waste management, and water and energy efficiencies. This will include a construction E&S management plan and procedures specific to the Riverview project. Before residents take up the apartments, a detailed building management plan and manual will be developed, which will among other things, stipulate detailed requirements and day-to-day procedures on the management of site security and safety, life and fire safety, emergency preparedness and response, and waste discharge. Refer to the ESAP for details.

Aanandi expects to have a staff of up to 25 persons at the peak of construction. All staff will be full-time direct hires. The Company’s HR policies (as part of its Operations Manual) include the following aspects: organizational structure, employment contracts, training and development, and defining tasks (e.g. entering confined spaces; testing of equipment which necessitates bypassing of safety devices) which will require management approval. Terms of employment as well as rights and responsibilities of employees are formalized into employment contracts and communicated to all employees, and follow the requirements of national labor laws. Remuneration is competitively determined by referencing market rates and complies with minimum wage laws. Hiring and employment practices recognize the principles of non-discrimination and equal opportunity. The Company does not prevent its employees from forming or joining trade unions or workers’ organizations, and there is no evidence of child or forced labor in the workforce. Staff communicate (and voice work-related grievances if any) face to face. There have been no instances of labor disputes or litigations.

During construction, contractors (cons) and sub-contractors (sub-cons) will provide temporary housing for non-local construction workers. The Company will develop a set of minimum standards (in relation to ensuring: minimum space; supply of water; adequate sewage and garbage disposal; protection against heat, cold, damp, noise, fire, and disease vectors; adequate sanitary and washing facilities separately for men and women; ventilation; cooking and storage facilities; and lighting) applicable to such housing and ensure that cons and sub-cons adhere to these; and also ensure that housing is provided without violating principles of non-discrimination and equal opportunity or restricting workers’ freedom of movement. Refer to the ESAP.

Electricity will be supplied by the main grid in Vientiane, and a diesel powered backup generator will be installed to provide emergency power. Drinking water for residents will come from the municipal water supply company, with an on-site water treatment system to be installed to provide filtered water to residents. Water samples from the swimming pool will be collected and regularly dispatched to a qualified laboratory for water quality tests. Sanitary wastewater from the apartments will be treated by two on-site septic tanks to be installed (based on a design comprising grease traps, equalization, aeration, and sedimentation tanks, and a sludge collection tank, the design specifications of which meet the World Bank Group General Environmental health and safety guideline standards), and it is expected that about 15% of the treated greywater will be used for gardening of green areas within the apartment areas. The remaining 85% will be discharged to the municipal sewer via two main discharge points near the project site. Sludge from the septic tanks will be collected by third party companies to be recycled or landfilled. Solid wastes, mainly garbage and sanitary wastes, will be collected by the municipality, and recycling options will be explored by the company where feasible. Regular monitoring will be carried out on the septic tanks to ensure that they are not overloaded and are operating properly.

Unarmed security guards will be employed to secure the project premise during construction and operation. In the absence of a national fire code in Lao PDR, the Project’s detailed schematic design has been developed to conform to requirements of the fire code of Thailand. This will, among other measures, include the installation of a fire detection and alarm control panel, sprinkler system, two separate exits, on-site fire-fighting water tanks, and pumps and hose reels. The proposed design is consistent with IFC’s Life and Fire Safety (“L&FS”) requirements. The Company will submit the L&FS master plan to IFC and will confirm, after construction, that the systems were installed in accordance with the accepted design and are fully functional and available at all times. As described under PS1, the Company will be putting together a building operational manual, which will detail management measures to minimize life and fire risks and include the documentation of L&FS testing and maintenance records so as to ensure continuous supervision of a functional L&FS system during the lifespan of the buildings. This will be made effective before the apartments are occupied.

Likely impacts on local residents from the Project’s construction activities are related to noise, vibration, and the influx of construction workers (estimated to average 50 persons during the 12-month construction period, and up to 100 persons during the peak of construction). To mitigate these impacts, the Company: (i) has already established a policy of only permitting construction work during 9am – 3pm on Mondays to Saturdays, and installing necessary noise barriers and cancellation devices where needed and appropriate; (ii) will supervise and work with the cons and sub-cons to ensure that all construction workers abide by relevant requirements in the construction E&S management plan and procedures to be developed. Refer to PS1 and PS2, and the ESAP.

There are about 20 local households (neighbors) in proximity to the project site. The Company started discussions and engagement with the neighbors at an early due diligence stage of the project, to inform them of its intention to develop the project, discuss anticipated influx and noise/vibration issues during construction and proposed mitigations, and to seek their feedback and concerns if any. As part of the local regulatory requirement, before approval of the project was issued, the Company as a developer was required to obtain written consent to the project from neighbors, which it did and on that basis subsequently obtained project approval from the authorities. Feedback from the neighbors, corroborated during IFC’s discussions with several local residents, indicated that they understood what the Project would entail including the timeframe of construction, the anticipated influx of workers and noise/vibration during construction, and the proposed mitigations. The neighbors had no concerns and expressed their consent for the project to proceed.

Contact Person: Mr. Leslie Glosby

Company Name: Aanandi Lao Co Ltd

Address: Thaduea Road, Haisok District, Vientiane Capital, Lao PDR.

Email: leslie.glosby@aanandigroup.com