While all Performance Standards are applicable to this investment, IFC’s 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.
PS1: Assessment and Management of Environmental and Social Risks and Impacts
PS2: Labor and Working Conditions
PS3: Resource Efficiency and Pollution Prevention
PS4: Community Health, Safety and Security

PS5: Land Acquisition and Involuntary Resettlement is not triggered because the land (24 hectares) for the construction of the new plant and the farm was acquired on a willing-buyer willing-seller transaction at market price from an individual. The transfer of the land title to Rikweda is not fully completed due to administrative issues although the company has made full payment.
PS6: Biodiversity Conservation and Sustainable Management is not triggered as the site does not overlap with any Important Biodiversity and Bird Areas (IBAs) and Key Biodiversity Areas (KBAs). There are no national or regional conservation areas in close distance of the project area of influence, and the farm owned is only for testing and demonstration purposes.
PS7 and PS8: IFC screening confirmed that Indigenous Peoples is not applicable to this investment as no Indigenous Peoples is present in the company’s operational area and Cultural Heritage is also not applicable as there are not known cultural artifacts within the company’s operational footprint.

Contextual Risks: An assessment of contextual risks was done for the proposed project that could impact success of the project. The key contextual risks are (a) Security: Afghanistan is an extremely fragile and conflict affected state. It has extreme risk in security forces and human rights index and conflict intensity. There is continuing internal political conflict in the country between government forces and insurgent groups. UN Assistance Mission in Afghanistan (UNAMA), still present in the country, documented 8,397 conflict-related civilian casualties (2,562 deaths and 5,835 injured) in the first nine months of 2016. Government did not consistently or effectively prosecute abuses by officials, including security forces. Security situation in the country will impact security arrangements of the plant and could be a risk for personnel and nearby communities. The QaE document states that security costs are one of the major concerns for governmental agencies, private sector investors. Project's security arrangements are assessed accordingly and concrete actions are agreed; (b) Water: As Afghanistan has high risk in water stress and water security, the farmers use irrigation channels and water from hill torrents for the irrigation purpose. The project will use underground water through pumping.
The company will conduct feasibility survey to assess ground water levels and quality to avoid any potential conflicts with local population due to their perception of potential impacts on availability and quality of water; (c) Child Labor: Afghanistan has extreme risk in child labor, forms of child labor are also seen in agriculture, especially in production of poppy seeds. There is no adequate institutional capacity to enforce child labor law in agriculture supply chain. There are no significant data regarding child labor in raisin production. However, as the project will supply raisins from several small farmers, it is possible that children are working in family farms; (d) Forced Labor: The Afghanistan has extreme risk of forced labor and modern slavery. The government law is not effectively enforced; there is no effective institutional mechanism available for complaint handling, inspections and mediation; (e) OHS: Afghanistan has extreme risk in OHS, decent wages and decent working time. Agricultural workforce is especially prone to risks related to seasonality of work and long working hours during high season. There are not adequate OHS standards for the private sectors, mostly workers are hired informally. The Ministry of Labor has limited capacity to enforce labor laws; (f) Labor: There is provision in the law for right to participate in a union, but it does not provide protection to union workers; (g) Discrimination: Afghanistan has extreme risk in minority rights (Afghanistan 2004 Constitution recognizes 14 groups1), discrimination in workplace and women's rights. Female workforce and working conditions in agricultural sector, especially in family plantations might be a high risk area. According to Amnesty International report, more than 3,700 cases of violence against women and girls were registered by judiciary in the first eight months of 2016; (h) Food Security: Afghanistan
has extreme risk in food security. Pesticides are commonly used for pest management in Afghanistan; (i) Solid Waste Management: SWM is one of the major problems in Afghanistan. There is no solid waste management and recycling system in rural Afghanistan, solid waste is dumped by the factories at unused lands; (j) Governance: The country has extreme risk in corruption, corporate governance and criminality index. The company Rikweda Fruit is not traceable online (no website) and no Reprisk records were reached.

The project is expected to have limited site specific environment and social impacts and risks, which could be avoided
or mitigated by adhering to recognized performance standards, procedures, guidelines and design criteria as described in
the specific PS sections. Therefore, the project has been categorized as a Category B project in accordance with IFC’s
Policy on Environmental and Social Sustainability. The project is designed to avoid, minimize and manage E&S risks and
impacts of the company’s operations in compliance with Afghan legal and regulatory requirements, and IFC’s
Performance Standards (PSs).
Key environment and social risks associated with this investment are (i) effective implementation of ESMS, including
capacity of staff to comply with IFC Performance Standards; (ii) security; (iii) food safety; (iv) potential for child and
forced labor in the supply chain; (v) management of crop residues and solid waste; (vi) farmers’ poor agricultural practices
and awareness of use of pesticides and fertilizers; (vii) sustainable water use; (viii) occupational health and safety; and
(ix) life, fire and traffic safety. Other E&S issues include: use of diesel for power generation, wastewater treatment, and
human resource management.

IFC’s appraisal considered the environmental and social management planning process and documentation for the Project and gaps, if any, between these and IFC’s 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 implementation of these measures, the Project is expected to be designed and operated in accordance with Performance Standards objectives.

Environmental and Social Assessment and Management System: Rikweda constructed the Istalif plant, without completion of an Environmental Impact Assessment (EIA) as required by the Afghan EIA Regulation (2007). In order to obtain the environmental permit, The Afghan EIA Regulation requires for Category 2, as the project is expected to be Category 2, that the project proponent and owner should submit an application form and a screening report to NEPA. The documents should be meeting the agency’s required technical guidelines for the screening report, e.g., description of the activities, completion of Rapid Environmental Assessment (REA) to identify potential impacts and their sources and the relevant mitigation measures, public participation in the assessment process etc. Once the application form and other relevant documents are submitted to NEPA according to the agency EIA regulation, NEPA would: (i) issue a Certificate of Compliance, with or without conditions, (ii) advise the applicant in writing to review the technical reports and address the concern of NEPA. According to the EIA regulation, NEPA would grant a Certificate of Compliance or would refuse to do so and provide written reasons for the refusal to the applicant. The EIA regulations are silent on NEPA rules during implementation of the activities. Rikweda requires to complete a Rapid Environmental Assessment (REA) and submit to the National Environment Protection Agency (NEPA) for review and approval. Currently, Rikweda is in the process of completing the REA and finalizing the preparation of an environmental and social management plan (ESMP) for the Istalif plant.

Being a newly established company, Rikweda, shall develop and implement an environment and social management system (ESMS) for its agriculture and processing operations, aligned with local laws and regulations, and IFC Performance Standards (ESAP #1). As part of this ESMS, Rikweda will identify the food safety, occupational health & safety, and environmental certification schemes required by potential Buyers, and, at a minimum, seek a Food Safety certification for its processing operation (ESAP #2).

Policy: Rikweda shall develop and adopt an Environment and Social (E&S) Policy stating the company’s commitment to managing environment, social and corporate responsibility aspects, including food safety, pollution prevention in primary processing, resource and energy efficiency, good agricultural practices at farm level, and engagement with farmers and farming communities. The policy will be communicated to all employees, workers, customers and suppliers (ESAP#1).

Identification of Risks and Impacts: As part of the ESMS implementation, the Istalif plant will establish a risks and impacts identification process and develop food safety, health and safety and environment (FHSE) Standard Operating Procedures for its operational phase. Rikweda will also develop procedures to address additionally identified E&S aspects aligned with local regulatory requirements, international certification requirements and IFC PSs.

E&S Management Plan: Rikweda needs to develop and implement a comprehensive management plan to avoid, control
and/or mitigate E&S impacts as identified in the environment and social risks and impacts assessment process. This ESMP
will describe appropriate mitigation measures, defining institutional roles and responsibilities for implementation and
monitoring, suggested timeline, and cost estimates (ESAP #1).

Organizational Capacity and Competency: Rikweda’s Vice-President is the responsible person to ensure implementation of the E&S Policy and oversee activities related to the ESMS. The Operations Manager will be responsible for implementing the ESMS and reporting E&S matters to senior management. Monitoring of E&S aspects at farms will be supervised by an Agricultural Engineer and reported to the Operations Manager. Rikweda is in process of hiring staff for the Istalif plant and potential candidates for positions covering key E&S aspects have the required skills for their respective positions.

Training: The Administration Manager will develop and implement a training plan for all workers, contractors and service providers including capacity building sessions on: job specific hazards, occupational health & safety procedures, food safety management system, ESMS, and other certifications E&S requirements. The training plan will be periodically updated by need assessment reviews.

Monitoring and Review: Rikweda will implement specific monitoring and auditing activities and ensure results are included in management reviews. As part of the ESMS, the company will develop a procedure for the review of E&S  performance including aspects related to: energy and water consumption, food safety, and occupational health & safety. Information collected will be aggregated quarterly and included in an E&S report to management (ESAP #1).

Supply Chain: In addition to Rikweda’s own demonstration farm, the raisin supply chain will include middlemen such as the farmers’ cooperatives union, and individual small and large farmers. Farmers and middlemen will have exclusive agreements with the company to ensure supply and quality of product. As part of this activity, Rikweda will develop a supply chain management system including a responsible purchasing policy with targets to increasingly source from suppliers that are adhering to good agricultural practices, including avoiding child labor and forced labor (ESAP # 3). Rikweda will work with development partners, and introduce a good agricultural practices program to its suppliers. The objective of this program is for farmers to apply the principles considered under the Global GAP certification scheme. This supplier program will include capacity building for farmers on: integrated pest management; management of productivity, quality, and hygiene; on-farm water management and solid waste management; and farm economics/recordkeeping (ESAP#3). The company will maintain a procurement log book and record farmers that are participating on the program and have implemented Global GAP principles.

Initially, Rikweda will have about 60 direct workers at the plant and a still undetermined number of third party service providers engaged in the transportation of raisins from collection centers to the plant.

Human Resources Policies and Procedures: The company will develop a Human Resources (HR) Policy, and an HR manual specifying terms of employment and working conditions for the management of company employees, and third party workers aligned with Afghanistan Labor Law(s), and IFC PS 2 (ESAP#4). The salient features of the HR policy and manual will include the principles and procedures regarding: recruitment of workers; non-discrimination and equal opportunity at work; measures to prevent child and forced labor; the compensation and salary structure; working hours and overtime; leaves; procedures for medical examination before hiring and periodic checkups during service; registration with social security agency and medical insurance; disciplinary measures and termination; workplace rights and workers obligations including protection for contract/temporary workers; right to form and join workers union; occupational health and safety; and, complaint resolution procedures. The HR policy and HR manual will be approved by the company’s senior management for formal adoption by the company. These documents will be translated into local languages (Pushto and Dhari) and provided (hard copy) to all workers as part of the hiring process and available at all times at the HR function. The HR function will keep all employees and third party workers informed of updates to the company’s HR policies, procedures and practices, and will organize dedicated training sessions for managers, supervisors and workers.

Workers Engaged by Third Parties: As a part of its HR policy, Rikweda will develop principles and guidelines related to HR management of third-party workers including contractors, and service providers. Contract agreements will be signed with all third parties and ensure third party workers obtain terms of employment in line with national law.

Supply Chain: Child labor is prevalent in the agriculture sector in Afghanistan, which is also flagged by the U.S. Department of Labor (2015 findings) as an area of particular concern in farming. As described under PS1, Rikweda will implement a supply chain management system and ensure suppliers adhering to good agricultural practices which will include avoiding child labor and forced labor. As part of this system, Rikweda will implement a monitoring procedure and periodically verify compliance with these requirements.

Grievance Mechanism: Rikweda will develop and implement a grievance mechanism, ensuring all workers know the process and have access to channels to introduce a grievance. The HR function will be responsible to receive and resolve complaints of all workers including third party workers and suppliers. Rikweda will form a Grievance Committee to address complaints of internal and external stakeholders, which could not be resolved at the level of the HR function. The company will develop a whistle-blower policy to promote transparency and integrity by encouraging all workers including third party workers and suppliers to report any actions that are in non-compliance with the HR policy and procedures (ESAP#5).

Occupational Health and Safety: Rikweda will conduct an OHS risk assessment/job hazard analysis to assess the safety, physical, ergonomic, chemical, and biological hazards of its operations and prepare risk prevention activities, procedures and emergency response plans. It will install warning signage and conduct regular inspections and monthly internal audits of its operation. All workers will undertake an induction training at the time of joining and specific trainings for each work position. Personal Protective Equipment (PPE) will be provided to workers where necessary to ensure workers are only exposed to acceptable levels of residual risk. Annual training plans will be developed and mandatory job specific OHS trainings will be provided to all workers. Rikweda will also track OHS statistics, including: (i) total recordable incident rate (TRIR), and (ii) lost-time injury rate (LTIR). Statistics will be reviewed monthly by senior management and necessary corrective and preventive actions implemented accordingly (ESAP#6).

Energy and Material Efficiency: The company will purchase electricity from the national grid, and use a diesel generator as a standby source during power outage. Rikweda will install a 9 kWh per hour solar power system for ground water extraction.

Water: No study has been conducted to assess groundwater availability to support company operations and the company will extract 5,700 gallons/day of groundwater from 3 wells to meet resource demand for processing and farm irrigation. As part of the REA process, Rikweda will request an extraction permit from the NEPA which will indicate specific water extraction limits. To ensure the company can track and justify extraction limits, Rikweda will install a water meter on this well and record water use. Rikweda plans to set annual water consumption reduction targets per ton of raisins processed using international benchmarks. The company will develop a roadmap to reduce water discharge, which will include the following phases: 1) minimize water consumption for processing; 2) recycle water after primary use; and, 3) reuse treated wastewater.

GHG Emissions: GHG emissions from the Rikweda operations are expected to be predominantly associated with: the use of a power generator; electricity consumption; and, supply chain (raisin) transport. Although GHG emissions have not been calculated, it is not expected that the project will exceed the 25,000 tonnes CO2eq threshold.

Air Emissions and Ambient Air Quality: The diesel generator is the only source of air emissions from the plant operations. However, given that it will only be used during power outage, the impacts are of short duration. Nevertheless, Rikweda will conduct semi-annual maintenance inspections to ensure that the generator is operating efficiently and safely; and monitor air emissions regularly.

Wastewater Treatment: A wastewater treatment plant will be built to treat wastewater from processing operations and ensure it meets national standards prior to discharge to the agriculture fields. The company will seek the necessary authorization from government authorities to apply treated wastewater in the agriculture fields.

Solid Waste Management: Solid waste from the plant operations include, defective raisins, packaging materials such as cardboard and plastic, damaged equipment parts, office waste and waste from on-site canteen operations. Most of this waste is recycled, using third party vendors. The company will acquire approval from the NEPA for safe disposal by an authorized/approved waste management contractor.

Hazardous Materials: Diesel for the generator and chlorine bleach (sodium hypochlorite) for cleaning raisins and equipment are the main hazardous materials used in the plant operations. As part of the ESMS, the company will implement procedures for safe handling, storage and disposal of hazardous materials, and appropriate use of Personal Protective Equipment. Rikweda will develop an Emergency Preparedness and Response Procedure for handling potential spills (ESAP#1).

Pesticide Use and Management: Rikweda will implement integrated pest management (IPM) practices at its own farm. As
part of this effort, Rikweda will only use approved chemicals as per IFC PS3, and ensure Material Safety Data Sheets are
kept and instructions followed (ESAP #7).

The Istalif plant is located in a rural area surrounded by grape farms, and the settlement of Kalakan village is located 1km away from the plant, along the road, which will be used for transportation in and out the plant. The potential risks and impacts to the community are mainly associated to dust and noise from traffic and transportation. Emergency Preparedness and Response: The plant will be equipped with necessary fire prevention systems including alarms, a combination of fire extinguishers, gas suppression systems, and a hydrant with a dedicated water reservoir. Rikweda will undertake regular inspections of fire extinguishers and hydrant systems, and conduct fire safety and first aid drills monthly.

Security Personnel: Rikweda will develop a Security Policy to ensure that security standards are in place to protect all personnel and assets. The Vice President will act as Security Head and is responsible for implementing site-specific procedures, and monitoring actions. The Istalif plant is equipped with a Closed-Circuit system which allows to monitor unauthorized access, and armed security guards employed work on two 12-hour shifts. The Security Policy will outline the requirements for security guards, including criminal background checks prior to joining, formal training on use of approved weapons and regular practice, weapons storage, and rules of engagement. There have been no incidents related to armed security guards and the surrounding community. All potential incidents will be reported, recorded, investigated and documented (ESAP #8).

Stakeholder Engagement: The Company has plans to implement Corporate Social Responsibility (CSR) Programs for
surrounding communities at the Istalif plant, including farmers. No local communities will be significantly affected by
environmental risks or impacts from the plant’s operations, and no public complaints or litigations have been raised. Most
of the company’s interaction with surrounding communities will be through purchasing of raisins and through its supply
chain program providing training on agricultural practices to farmers. Rikweda will develop a mechanism for handling
complaints and requests from surrounding communities (ESAP#9).

Contact Person: Mase Rikweda
Company Name: Rikweda Fruit Process Company
Address: Wazir Akbar Khan, 15th Street, House 349, Kabul City, Kabul
Email: maserikweda@gmail.com
Phone: +93787264110 (Afghanistan)
Facsimile: N/A

Broad Community Support is not applicable for this project