PS5 on Land Acquisition and Involuntary Resettlement does not apply as the project is planned on land already owned by LLP and obtained through a willing-buyer willing-seller transaction. PS6 on Biodiversity Conservation and Sustainable Management of Living Natural Resource is not considered applicable as the projects are being developed in a peri-urban area of modified habitat with no significant biodiversity values. PS7 on Indigenous People does not apply because no indigenous people, as identified by IFC Performance Standards, have been identified in the area of influence of the project. PS8 on Cultural Heritage does not apply as there is no planned expansion in known cultural heritage areas.                                              

       This is a category B project according to IFC’s Policy on Environmental and Social Sustainability because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Specific key environmental and social issues reviewed for the project include: (i) client’s corporate environmental and social management capacity to build the project in a manner consistent with IFC Performance Standards; (ii) working conditions for employees; (iii) management of occupational health and safety (OHS) risks; (iv) efficient use of energy and water; (v) waste and wastewater management; and (vi) construction contractor’s environment and social management systems (ESMS).                                                 

         Environmental and Social Assessment and Management System:

LLP commissioned an environmental assessment (Estudio de Categorizacion Ambiental) as part of the land acquisition’s due diligence. This study is currently being updated to reflect current project risks and impacts, requested by the National Infrastructure Agency (Agencia Nacional de Infraestructura -ANI) as part of the environmental licensing process. The study will include an environmental management plan (EMP) that shall be implemented by LLP for construction and operation activities. The EMP requirements will be incorporated into the ESMS that LLP’s main contractors will have in place for the project. Thus, as part of the ESAP, LLP will include contractual obligations for its main construction contractors: structural, steel (frame and roof), infrastructure and building shell; to develop, coordinate and implement an EMP and relevant programs and procedures to ensure alignment with PS1.

Policy: LLP will develop an environmental policy that will define its objectives and principles to guide its activities and will specify who is responsible to ensure conformance with the policy and be responsible for its execution.

Identification of Risks and Impacts and Management Programs: As noted earlier, LLP developed an environmental assessment that is being updated per ANI requirements. Subsequent stages of development in the same land plot will require  new construction licenses. LLP will include contractual requirements to contractors to ensure they have the relevant programs and procedures in place to ensure that risks identified on the environmental assessment are adequately managed. This requirement will be supervised and reported to LLP management by the general constructor and the technical quality assurance firm (interventoria tecnica).

Organizational Capacity and Competency: LLP employs experienced staff with background in the logistics and construction sector, with adequate technical background. The team has developed similar projects several countries in Latin America. LLP’s CEO and founder has over 15 years of experience developing similar centers in Latin America, and its Colombian Market Leader has extensive experience structuring, and managing projects in both commercial and residential construction sectors.

Regarding how responsibilities are distributed, the Country Manager is responsible for all activities in Colombia and works in tandem with the Development Director, who oversees all aspects of design and building; both report to LLP’s CEO. Moreover, a Project Manager is responsible for all development activities for both Peru (project financed by IFC) and Colombia, and reports to the relevant Country Manager. Oversight of the contract for construction activities, including ESMS implementation on site, relies on the Project Manager. A construction management firm is tasked with managing the construction and supervision of main contractors.

Emergency Preparedness and Response:

The project is currently at an early stage of development. Once construction activities begin, LLP will require its general construction contractor to coordinate and develop an emergency response plan for implementation that will consider the relevant potential emergencies for both operational and natural hazards in the area, based on a risk assessment exercise and as part of the ESAP.

Design and development plans for the project were completed in accordance with Colombian regulation requirements. Regarding fire safety infrastructure and equipment, the project will be equipped with a fire pump and control room that complies with the requirement of the US National Fire Protection Association (NFPA 20). There will be a water tank storage to ensure adequate supply in case of emergencies.

Monitoring and Review: LLP is relying on a construction management company and a construction quality assurance and control company (interventoria tecnica y adminsitrativa), whose responsibility is to ensure that subcontractors perform their work plan on schedule and as specified in the contract. The construction quality assurance and control company will develop relevant key performance indicators to monitor the environmental and OHS performance during construction and will report findings to LLP’s Project Manager.                                            

     Human Resources Policy and Procedures, Working Conditions and Management of Worker Relationship: LLP’s workforce in Colombia currently comprises of four people in charge of commercial, financial and project management activities. During construction, it is expected that contractors will employ up to approximately 600 employees (please confirm) on site for the Project. There is a contractual obligation for construction contractors to comply with labor and occupational health and safety (OHS) regulations. LLP and its subcontractor employees will be: free to join unions, provided with information regarding their labor rights, not employ child and forced labor, and provide all the conditions required to ensure a safe working place, including but not limited to training, communication of hazards and provision of personal protective equipment. In addition, LLP will ensure that there is an internal grievance mechanism in place for all employees working on the project.

Occupational Health and Safety: The project’s OHS risks are those inherent to construction activities, such as: working at heights, handling of heavy equipment and hand tool operations, hot work, ergonomics, among others. As specified on the ESAP above, subcontractors will be required to follow the relevant OHS regulations, to ensure that risks on the construction site are adequately mitigated.

Workers Engaged by Third Parties: LLP contracted the services of a construction management company, who will be in charge of the construction operation and managing some sub-contractors. These subcontractors are contractually required by LLP to follow local environmental and OHS regulations. This requirement is described on the ESAP, together with a requirement that all employees on site have access to the internal grievance mechanism.                                              

           Resource Efficiency: The project will be built with energy and water efficiency measures to achieve IFC’s Excellence in Design for Greater Efficiency (EDGE) certification. Moreover, contractors will put in place an energy and water saving program. The project will take its electricity from the grid, and there will be an emergency diesel generator.  For lighting, the project will install LED lamps and water-saving fixtures.

GHG Emissions: Greenhouse gas emissions (GHG) emissions for LLP are due to electricity and fuel consumption during construction and operations. Based on estimates for the facility, emissions are expected to be approximately 593 tonnes of CO2-equivalent annually; including the expansion plans emissions will be below 25,000 tonnes of CO2-equivalent. Thus, no GHG emissions reporting requirements apply to this project.

Water: During construction, potable water will be brought to the project site by trucks. Water use for operation activities will be primarily for domestic use and will be sourced from municipal water system (Aguas de la Sabana ESP) and the company has already obtained the relevant permits for its use. The activities hosted in the warehouses, once in operations are not expected to generate industrial effluents. Rainwater will be collected and infiltrated on site, effluents will be treated on a wastewater treatment plant on the project site and discharges will be made to the municipal water sewage network.

Pollution Prevention: Effects of project activities on air quality are expected to be minimal. Air emission are due to dust, exhaust from trucks and emergency diesel electricity generation. Noise levels due to equipment operation and truck traffic will be monitored during construction and will be negligible during operations. The project is located in an industrial area and the company will implement standard industry practices during construction to minimize impacts.

Wastes: Construction debris will be sorted and segregated before recycling. Disposal of construction excess material and other wastes will be done in facilities designated by the municipality. Conventional waste expected to be generated during operations will be mostly related to packaging material (organic, aluminium, plastic, carton and glass); scrap metal and recyclables are collected by contractors.

Hazardous Materials Management: Contractors are required to follow local regulations for adequate storage and disposal. To achieve this, the general contractors will develop a plan to manage hazardous wastes and construction material. During construction, these hazardous wastes correspond to: used oil, lubricants, batteries, paint and solvents. During operation, the tenants are not expected to handle significant hazardous materials: nevertheless, the facility will have dedicated storage for hazardous waste and each tenant will be responsible of adequate storage and disposal. The facility will have a tank for diesel storage for electricity emergency generation and will be provided with secondary containment.

Wastewater Treatment: The facilities’ effluent is characterized as domestic and a wastewater treatment plant (WWTP) will be part of the project. Water effluent will be treated to the adequate level as per local regulations before being discharged to the municipal network and LLP has secured the relevant permits for this action.                                           

      Community Health and Safety: The project poses minimal health and safety risks to the surrounding communities. Potential risks that could arise are: noise, dust, and traffic disruptions due to construction activities; traffic disruptions due to tenants’ trucks entering and exiting facilities during operations.  The company has undertaken a traffic impact assessment, that shows that impacts are indeed minimal.

Security Personnel: LLP contracts its security personnel. Guards will be armed, and their main responsibilities are: access to the facilities for employees and trucks, coordination with the construction site manager on the response to emergencies in the project site. As part of the ESAP, LLP will ensure that security contractors are adequately trained in the use of force and appropriate conduct toward workers and nearby residents, have not been implicated records of past abuses and follow the local requirements for security contractors.                                             

        The company is in the process of fulfilling the relevant stakeholder engagement requirements specified by the municipality, to obtain the relevant license to operate. Relevant information about the project will be published at the entrance of the project site.  The company will develop a grievance mechanism to capture and respond to any concern that the neighbouring communities may have during construction activities.                                           

Contact Person:  Guillermo Zarco
Company Name: Latam Logistics PropCo COTA 1
Address:             Av Calle 82 N 9 – 65 Edif Savile of 302, Bogota DC, Colombia.
Email:                 guillermo@latamlp.com
Phone:               +5715185124