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:

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 

PS4 (Community Health, Safety and Security), 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 applicable given that the company does not and will continue not to employ armed security; land acquisition for new tower sites will be obtained only from willing landowners; no significant risks or potential impacts are expected on habitats with high biodiversity values due to the installation and operations of tower sites, through the implementation of the procedures described under PS1; no Indigenous Peoples (IP) are expected to be affected given that the towers will be installed mainly in urban or peri-urban locations (but the company will develop an appropriate procedure to meet relevant requirements as described in PS1 and will notify IFC in case a new facility is proposed to be installed within or in the vicinity of an IP land); and no important cultural heritage is expected to be impacted (but in case a chance find occurs, the company has procedures to handle it).

IFC’s appraisal considered PTB’s record of E&S performance under IFC’s existing investment in the company.  As noted above, PTB’s record of E&S performance is satisfactory.  Under IFC’s proposed investment, PTB will implement and develop, as discussed under PS1, its existing E&S management system with respect to its expanding operations.  Through continued implementation of PTB’s E&S management system, along with the application of any improvements as needed, the project is expected to be designed and operated in accordance with Performance Standard objectives.

As there are no major adverse environmental or social impacts expected to result from the proposed project, and it is possible to avoid or mitigate any limited adverse impacts that might result, the proposed investment has been classified as a Category B project according to IFC’s Policy on Environmental and Social Sustainability. 

Under the E&S Action Plan agreed (ESAP) with IFC as part of the first investment in PTB, the company developed and implemented the E&S policies and procedures required to meet IFC Performance Standards.  Actions of the ESAP were satisfactorily completed. 

PTB has a qualified officer overseeing the management of E&S risks and impacts of its operations. PTB will continue to implement its E&S policies and procedures developed under IFC’s investments in PTB, and is committed to continuous improvement as needed.  PTB will maintain its policy of not developing any proposed new facility that cannot be expected to comply with applicable standards.

PTB will perform E&S assessment of risks and impacts of any new operations, according to its E&S policies and procedures. E&S reviews will be commensurate with the level of E&S risks and impacts in the relevant operations. The reviews will ensure that PTB’s operations, including installation of any new tower site, will comply not only with all applicable E&S laws and regulations of Brazil, but also with IFC’s Performance Standards.

The construction of additional telecommunication towers in this project may involve coverage of some rural areas.  Therefore, PTB will develop policies and procedures to ensure that any potential rural site is assessed for natural and critical natural habitat, and for indigenous peoples (as per the attached E&S Action Plan).  Wherever any such habitat or indigenous people are identified, appropriate management measures will be applied, consistent with the requirements of PS6 and PS7.  Such measures will ensure that: (a) site construction will comply with Performance Standard 6 and 7; (b) no adverse impact will result; (c) all needed permits and legal authorizations will be obtained; (d) procedures for construction and operation of towers on indigenous lands respect indigenous customs and culture; (e) towers will be built only to provide the needs of the local population; and (f) ample engagement process will be undertaken with indigenous communities.  

In case an archaeological chance find occurs, the company has procedures to handle it.  PTB will continue to implement fire and life safety policies and procedures for office spaces and tower sites developed under IFC’s first investment.  PTB will continue not to use armed security guards at any of its sites.  

PTB will continue to supervise the ongoing E&S risks and impacts in all of the company’s operations for the duration of its involvement. For this purpose, PTB has developed specific monitoring and review procedures.                                             

PTB employs 69 workers directly and about 15 workers indirectly through subcontractors, and expects to employ 70 workers directly and 15 workers indirectly by the end of 2018.  After IFC’s first investment in PTB, a collective bargaining agreement was signed between PTB and its workers’ union, Sindicato dos Empregados de Agentes Autônomos do Comércio e em Empresas de Assessoramento, Perícias, lnfórmações e Pesquisas e de Empresas de Serviços Contábeis no Estado de São Paulo.

Under IFC’s first investment in PTB, the company developed and implemented an integrated set of human resources policies and procedures, which ensure compliance with applicable local labor laws and regulations, as well as with IFC PS2.  They are made available in Portuguese to PTB workers in Brazil.  The policies and procedures promote fair treatment, non-discrimination, freedom of association (right to unionize) and equal opportunity of PTB’s employees, and include written procedures for handling employee grievances. 

Workers are provided with appropriate personal protective equipment and health and safety training for the type of work in which they are engaged. For all of its offices, operational sites, and switching centers, PTB employs appropriate measures for life and fire safety. In addition, PTB implements procedures to ensure that no employee is below the legal employment age.

PTB implements contractor management processes that cover aspects of welfare, safety, monitoring, and record keeping/documentation. PTB makes reasonable efforts to ensure the relevant provisions (paragraphs 23 through 26) of this Performance Standard are met and that employees of contractors which perform work related to core functions of PTB are provided a safe and healthy work environment, including appropriate training, protective clothing and equipment. PTB also make reasonable efforts to ensure that no core contractors’ employee is below the legal employment age.  

PTB has established policies and procedures for waste management at construction sites, and includes terms in its agreements with contractors that cover pollution prevention and abatement. Under IFC’s proposed new investment in PTB, the company will continue to monitor compliance with terms in its agreements with contractors, and will seek improvement in the event that non-compliance is identified.

PTB sites generally use power from the electric grid, with backup power provided by batteries, supplied by PTB clients (telecommunications companies).  At new PTB sites, construction will inevitably generate some waste materials, and during operations there will be a need for properly disposing of items such as waste of soil and plastic. For these purposes, PTB will implement its policies and procedures for waste management, consistent with relevant World Bank Group EHS Guidelines. If PTB ever develops sites in rural areas where generators and fuel tanks are needed, then PTB will implement policies and procedures for secondary containment around fuel tanks and fuel spill protection consistent with relevant World Bank Group EHS Guidelines. 

PTB recognizes the importance of community engagement, and is committed to comply with IFC Performance Standards on disclosure and community engagement. The company therefore implements procedures developed under IFC’s first investment for prior disclosure to local communities and community engagement regarding any planned development of a new site, including a grievance mechanism, consistent with IFC Performance Standards.  

PTB will continue to comply with all applicable requirements for community consultation, and to address any grievances expressed by local community members, consistent with IFC PS 1 requirements. 

Mauricio Antonio Giusti de Oliveira

Phoenix Tower do Brasil

Rua do Rocio, 220 cj. 112

São Paulo, São Paulo 04552-000

E-mail: mgiusti@phoenixtower.com.br

Tel: +55 (11) 3365-2828