PS5 is not applicable since the footprint for the four projects that will use IFC proceeds did not require economic or physical displacement. PS6 is not deemed applicable as all the project sites are considered as modified habitats. PS7 is not considered applicable as no impacts on indigenous peoples were identified. PS8 is not applicable as locations are not known to be sites of cultural significance, albeit, chance find procedures shall apply.

  This is a Category B project according to IFC’s Environmental and Social Sustainability Policy as the potential adverse E&S impacts presented by the project are few in number, site-specific and have been or can be readily addressed through mitigation measures.

The key E&S issues in this project include: i) effective E&S due diligence prior to selection of project operator to ensure alignment of the project with national requirements and IFC’s Performance Standards; ii) development and implementation of an Environmental and Social Management System (ESMS) to ensure effective management of related issues during pre-construction (such as land acquisition and economic displacement) construction and operation; iii) implementation of HR and OHS policies and procedures for contractors and for BIM Land operations; iv) design and construction of buildings in accordance with recognized building standards including resource efficiency, structural integrity and  L&FS; v) management of potential environmental impacts and risks during construction and operations such as solid waste, liquid effluents and resource efficiency. 

   Environmental and Social Assessment and Management System: BIM Land integrates the operators’ design standards at the project development stage. A project management team prepares the architectural design, agree the final engineering standards and finalize project specifications. The project management team then takes overall supervision of the project passing the development of the EIA to the relevant project subsidiary. All projects are developed based on local and national environment and building regulations of the relevant country.

BIM Land’s current approach towards E&S aspects has gaps when reviewed against the requirements of IFC PS1:  (i) there is no defined policy for E&S management, with a general compliance commitment from the project subsidiaries; (ii) management programs for mitigating identified risks are present, but require strengthening to reflect the full range of risks, and adherence to a recognized Good International Industry Practice (GIIP); (iii) although capacity and competency of roles are present at the project subsidiary level, this should be strengthened  to manage E&S needs such as construction contractor OHS and labor compliance (see PS2).  These needs shall require training programs to raise capacity of existing teams and apply a process of continual improvement. To date compliance to GIIP has only applied at operations with the improved standards driven by the operators (for two hotels the IHG), that BIM Land have engaged with. As set forth in ESAP #1 the company will develop an ESMS to manage E&S risks for the four projects. This ESMS shall cover: (i) land acquisition policy for pre-construction and site selection stages (when needed) aligned with IFC’s Performance Standard 5, stakeholder engagement and grievance redress procedure, Environmental and Social Impact Assessment (ESIA) development considering IFC’s PS requirements, demolition (as required) of existing structures including removal of Hazmats and solid waste, and processes to obtain  statutory permits approved prior to ground breaking; (ii) construction stage in terms of implementation and monitoring of E&S as defined in the ESIA to address identified risks and impacts, OHS and labor risks such as labor conditions during construction and management of waste, noise and traffic among other impacts; (iii) operations stage in terms of managing the properties following best industry practices for L&FS;  water theme park safety, and food safety among others. The ESMS shall be communicated and training provided to ensure its adequate implementation and monitoring.

Labor issues will be detailed in the next section of this ESRS; however, the ESMS should include guidelines to ensure that working conditions for contractor workers during demolition, construction and operation of the sub-projects are aligned with the requirements of PS2: Labor and Working Conditions.

Policy: The BIM Land sets the policy based on the national regulations where it operates, referring to its Guiding Principles that promote the sustainable use of natural resources, minimize generation of waste, and aim to foster a sustainable approach to the group’s operations. This is under pinned by a commitment to adhere to all national regulations, and the hotel operators’ needs during business operations. Although these Guiding Principles establish a good guidance for the company decision making, currently the policy does not require the project subsidiaries to comply with the IFC PSs’ and WBG Environmental, Health, and Safety (EHS) General Guidelines, this will be addressed with the implementation of the ESMS.

Identification of Risks and Impacts: EIAs’ in accordance with national environmental regulations are conducted for every development completed by the BIM Land. In Vietnam BIM Land complies with the Law on Environmental Protection No 52, 2005 and Decree on Environmental Protection Planning, Strategic Environmental Assessment, Environmental Impact and Environmental Protection Plans 2014, which requires an EIA to be completed for construction projects for tourist accommodation establishments or residential areas. 

Lao PDR Regulation on Environment Assessment in the Lao PDR 2000, requires all development projects to develop an Initial Environmental Examination (IEE), and an environmental management plan. In both cases the scope for the EIA is agreed with the respective country authority, in Vietnam this being Department of Natural Resources and the Environment (DONRE) at the provincial level, with the work conducted by a licensed environmental consultancy. The scope of the assessment including likely impacts during (as appropriate) demolition, construction and operations with a supporting Environmental Management and Monitoring Plan (EMMP). All EIAs are approved by the DONRE, and the Ministry of Environment (Vietnam and Lao PDR respectively), in consultation with other municipal authorities such as water utilities and transport.

It is a requirement that EIAs include consultation with local communities and full consideration of all relevant information on the affected environment, of proposed alternatives and their impacts and the requirements for monitoring and investigating residual impacts. It is further noted that assessment of baselines for both biodiversity and social economic impacts is limited. The four projects shall develop an Environmental and Social Impact Assessment (ESIA) appropriate to scale and impact aligned with national regulations of the nation state. Two projects in Phu Quoc (due to the location) shall complete ESIAs’ aligned to both national regulations and IFC PS1 with the need for supplemental studies determined by the ESIA consultant based on the known final design and likely impacts from the project. All projects shall develop and implement EMMPs’ for (as appropriate) demolition, construction and operation and include other project facilities such as construction workers accommodation and project related infrastructure. 

Management Programs: BIM Land has in place a commitment to focus on energy and resource use efficiency and comply with both national regulations and the design/environmental needs of the future hotel/ water theme park operator. The company engages a qualified environmental engineering consultancy that applies best available techniques (focused on international standards for energy use and L&FS). (See ESAP #1).

Organizational Capacity and Competency: Once projects are initiated BIM Land delegates responsibility to the project subsidiary for permitting and construction. Each subsidiary has a standardized organizational structure including: (i) environment department (responsible for developing the project specific EIA and complying with monitoring and reporting on statutory requirements); (ii) supported by an urban environmental management team (responsible for maintaining the local environment and the landscape); and, (iii) HR function that reports to BIM Land HR director. All these departments are supervised by the relevant project subsidiary General Manager who reports to the BIM Land management board. All teams interviewed and demonstrated adequate competency to be able to apply national regulations (see PS2).

Emergency Preparedness and Response: For each of the future hotel developments and the water theme park the emergency preparedness and response plans shall comply with local, IFC’s and the operator standards in terms of design and maintenance of infrastructure/equipment, personnel, and training/drills of staffs. For the hotel operations all L&FS standards are based on National Fire Protection Association 5000: Building Construction and Safety Code (or equivalent).  This shall be applied to all hotels being developed as part of this project. For management of customer related risks for water parks the BIM Land intends to partner with an international water park developer and is committed to apply that company’s standards in the design and development of the park. (See ESAP #1).

Emergency protocols for any demolition, or construction works shall be included within the ESMS.

Monitoring and Review: During (as appropriate) demolition and construction the ESMS and the ESIA, EMMP shall define the monitoring requirements; this will include permanent monitoring and reporting of OHS performance, noise, ambient air levels and other nuisances. Monitoring during the operational phase is currently done in compliance with local requirements and includes elements such as monitoring of fire safety equipment, follow up on energy and water consumption and monitoring of solid waste handling. It is worth noting the IHG (the future hotel operator of two hotels under the Project) has in place robust systems and approaches for monitoring of resource use, and actions to mitigate and reduce waste generation. See PS4.

Land Acquisition: The footprint of the projects to be financed with IFC proceeds in Vietnam (11 hectares) and Laos (~1 hectare) did not require economic or physical displacement of population.  Where land acquisition is required in Vietnam, the company relies on a government-led land acquisition procedure based on applicable local legislation, which involve consultations, public disclosure of compensation plans, negotiated settlements, compensation for loss of assets and other entitlements, but usually has gaps with IFC PS5 on Involuntary Resettlement, particularly in relation to livelihood restoration measures. Per ESAP#1, BIM Land will adopt a land acquisition policy in line with IFC PS5 for pre-construction and site selection stages as part of its ESMS.       

Recommendations on future approaches for compensation to project affected communities are included within ESAP #1 and the ESMS.

  Working Conditions and Management of Worker Relationship: BIM Land (through the three project subsidiaries) currently employs ~3,000 persons (~2,600 in Vietnam and 400 Lao PDR). Future employment for the four projects is anticipated to include: Ha Long ~600 new staffs; Vientiane ~300 new staffs; Phu Quoc hotel ~300 staffs; and, anticipated the water park shall require ~150 new staffs.   Under the operator arrangements all hotel staffs sign contract agreements with the relevant project subsidiary and employee terms and conditions are administered by the hotel operator (as part of the operator service agreement).

Construction workers for the Project are managed by the construction contracting companies and supervised by project subsidiary staffs for OHS and compliance to design and engineering standards. It was noted by BIM Land that they take responsibility to pay the construction contractor workers on behalf of the contractors. This is to ensure that contractors do not renege on settlement of workers’ wages. As such BIM Land check the identify and age of the contractor workers.

HR Policies and Procedures: The project subsidiaries assure compliance of the operator’s labor policies and procedures to the national regulations of the nation state. The IHG applies its Internal Rules and Regulations, this document explains the basic terms and conditions of engagement, entitlements, grievance process and disciplinary offences. Within this manual it states a zero-tolerance approach to gender-based violence and sexual harassment. Included are: (i) right to freedom of association; (ii) holiday entitlements (aligned to national regulations); (iii) working hours (including overtime limits); (iv) entitlements in terms of medical insurance/social insurance; (v) benefits such as accommodation, meals, and shift allowances (noted that no charges are applied for meals nor accommodation); and, (vi) no employee is below the age of 18, with identity cards/passports of employees checked with copies retained on file.

All employees receive induction training outlining benefits terms and conditions prior to signing of contract agreements, with additional training provided on hygiene and work-related requirements. All hotel operator staffs are subject to annual medical checkups.

The future operator for the water theme park has not been identified. As such, as part of the operator due diligence process the BIM Land shall ensure that the future operator standards (as well as the Citadines serviced apartment operator) for management of HR is aligned to the expectations of PS2. (See ESAP #1).

Working Conditions and Terms of Employment: All sighted working conditions at the operators existing facilities are considered as compliant to PS2.  Terms of employment of both the project subsidiaries and the IHG are considered as compliant to PS2.

Workers’ Organization: Project subsidiaries are all unionized in accordance with Vietnamese labor regulation. All employees in both Vietnam and Lao PDR join the relevant project subsidiary union on signing of contracts with the subsidiary. The union of BIM Land is the Trade Union of the BIM Land Joint Stock Company, with all project subsidiary employees eligible for membership.

Non-discrimination and Equal Opportunity: The proposed hotel operator for both the Ha Long and Vientiane developments have a clearly defined nondiscrimination and equal opportunity policy which is based on corporate requirements. This policy is communicated to all staffs working within the group and all workers engaged at point of induction training. The operators apply a Key Performance Indicator (KPI) system and work to promote continual professional development among all workers. All workers are encouraged to develop their skills with English language courses made available to all staffs.

Grievance Mechanism: The hotel operator for both the Ha Long and Vientiane projects has in place a grievance process that is outlined in the employment handbook, (given to all workers at induction). The steps and process are outlined with the process for escalation as needed. BIM Land have in place a grievance process that enables workers to bring grievance in a confidential manner, including submission of anonymous grievances. 

Protecting the Work Force: Future hotel operator for both the Ha Long and Vientiane (IHG) has in place explicit policies on prevention of gender-based violence or risks to physical assault within the work place. All workers are briefed in L&FS emergencies and encouraged to report any situation that is considered as unsafe. There is a staff whistleblower policy in place to ensure any misconduct suspected by a hotel guest or colleague can be immediately reported. As the operator is publicly listed within the United Kingdom, all its operations come under the reach of the United Kingdom Modern Slavery Act (2015), and as such IHG have installed robust policies to avoid human trafficking.

Occupational Health and Safety: IHG has a defined OHS procedures for maintenance teams that operate within the hotels. These procedures include: (i) lock out tag for electrical maintenance; (ii) confined space; (iii) hot work permit, and (iv) personal protective equipment needs; (v) chemical handling; (vi) work equipment maintenance and, (vii) swimming pool maintenance. Monitoring of hazards and training of employees are integral part of the OHS program of the IHG.

Workers Engaged by Third Parties: BIM Land (through the project subsidiaries) engage building contractors to construct the facilities based on the agreed design. Clauses within the contracts require the builders to comply with labor and national standards for the management of OHS and labor compliance.

Site visits during the appraisal highlighted OHS shortfalls against GIIP as well as inadequate supervision of contractor OHS performance. It was noted that contractor worker living accommodation was not compliant to the IFC PS2 requirements.

The project subsidiary OHS supervisor was responsible for four active building sites. This is not considered as adequate staffing levels when the average number of workers per site ranges from 300+ and in such complex construction environments (i.e. high-rise buildings). There were no records of monitoring by the BIM Land OHS supervisor and no records available on trainings or briefings (although verbally stated that daily briefings with contractor OHS teams were conducted). The management of construction contractor OHS and labor compliances does not meet the minimum requirements under PS2.  As set forth in the ESAP #3 BIM land will develop an OHS contractor management program to be applied on the three project subsidiaries. Such program will define resources and procedures to manage OHS risks at the construction sites. The program shall: (i) identify OHS risks and hazards at construction sites; (ii) define supervisory personnel needs (at least one qualified OHS officer per site) and responsibilities; (iii) define operational standards aligned with international best practices such as work at heights, scaffolding, excavation, hot work, etc; (iv) define monitoring and reporting protocols, including an independent bi-annual assessment to be submitted to IFC (as per ESAP# 4). The OHS framework shall be defined by a qualified OHS expert (e.g. consultant), acceptable to IFC. 

The standard of contractor worker accommodation does not meet IFC standards.  As set forth in ESAP #5 the three project subsidiaries shall develop and implement a worker’s accommodation standard in reference with IFC’s requirements on Workers Accommodation. The standards will be introduced to contractors/subcontractors and implemented incrementally over time to help ensure consistency with key aspects of IFC’s Workers Accommodation standards within the local context.

To reduce potential risks of conflicts between local communities and the project subsidiaries, the BIM Land shall require contractors under these projects to apply a worker’s code of conduct. Per ESAP #6 the company will adopt a Worker’s Code of Conduct for all workers, including those engaged through contractors and subcontractors, to avoid any health and safety risks and tensions with surrounding communities associated to labor influx.

  Resource Efficiency: The four projects are planned to be developed in accordance with international design standards to minimize consumption of energy and water during operation.  BIM Land engages environmental engineering consultancy firms to identify best available cost-effective practices to minimize related operational resource consumption with future hotel operator setting the operational standards.

It was noted that IHG has standards for the mitigation of waste and resource usage linked to corporate KPIs. For example: (i) the operator applies a building management system that enables real time monitoring of water and energy consumption; (ii) centralized water cooled chiller systems, (including transmission of cooled air to villas) reducing the use of standalone air conditioners; (iii) heat recovery chillers; (iv) heat recovery from kitchens; (iv) automatic cut off of air cooling devices when exterior room doors to balcony are accessed; (v) reduced flow devices on all water appliances; (vi) use of LED lighting; (vii) building design to maximize natural light and airflow; (viii) use of living roofs, and solar resistant glass to reduce solar radiation; (viii) recycling of waste water (grey water post treatment) as irrigation water for landscaping purposes; (ix) in guest rooms promotion of ecological efficiency with multiple use toiletry dispensers.

To ensure that these standards are maintained for the water park and the future Citadines serviced apartments the BIM Land shall have to evaluate both operators to ensure compliance to IFC PS3. (See ESAP #1)

IFC has engaged with the company to develop an approach for the Project’s adoption of IFC’s Green Building Standards.

Water: Water for the water theme park shall be sourced from ground water resources. Water for use in both hotels and serviced apartments shall be sourced from municipal supplies. All water entering the hotels is to be treated through sand and activated carbon filtration systems before passing through an ultraviolet filtration system and pumped to the rooms and villas. It is anticipated that daily water consumption rates are: (i) Water theme park estimated 293m3 per day (based on ~3000m3 water holding capacity); (ii) Holiday Inn Vientiane 366 m3 per day; (iii) Intercontinental Ha Long 420 m3 per day; and, (iv) Citadines serviced apartments consume 480m3 per day. Water loss from the water theme park is expected to be minimal with water anticipated to be lost through evaporation, F&B and use in sanitary facilities (showers and toilets). (See ESAP #1).

GHG Emissions: Based on the following assumptions that: (i) water Park consumes 2,168 kilo watts (kw) per hour at 18 hours per operational day for 365 days per annum;(ii)  Holiday Inn Vientiane shall consume 2,560 kw per hour at 24 hours a day for 365 days per annum; (iii) Intercontinental Hotel consumes 3,400 kw per hour for 24 hours a day for 365 days per annum; and, (iv) Citadines serviced apartments consume 2,600 kw per hour for 24 hours the total estimated greenhouse gas emissions per year is >25,000 t CO2e equivalent. BIM Land will monitor and report to IFC the annual GHG emissions.

Wastewater Treatment: The projects shall separate rain water runoff from grey or sanitary waste water. The future planned process for WWTP of the projects is based on standard industry approaches, with removal of waste oils and fats, settlement tank and aerobic tank treatments. All treated water subject to testing before discharge. It is planned for all treated water to be removed by land application within the landscaping of the facility. The waste water standards shall be required to comply with WBG EHS General Guidelines levels. (See ESAP #1).

Solid Waste Management: The future hotel operator for both the Ha Long and Vientiane projects (the IHG) waste management system is focused on reduction of waste and mitigating the amount of waste being transferred to land fill. The kitchens apply appropriate controls for management of perishable foods (this is compliant to the operators Hazard and Critical Control Point food safety certification (HACCP)), as well controls in food preparation and processing to minimize waste and losses. Food wastes are segregated from other inorganic wastes and stored in a chiller room and collected for disposal in municipal landfill. Inorganic solid wastes are disposed of through municipal landfill.

Pesticide Use and Management: All pesticides used are based on operator allowable guidelines with targeted use of chemicals for specific species. All pest management is contracted out to a licensed pest control agent.

 Infrastructure and Equipment Design and Safety: Future operators for both the water theme park and the Citadines serviced apartment will be international companies with previous experience of water parks and hotel operations and shall apply appropriate international standards in both design and construction to minimize resource use. Application of GIIP to assure the safety of customers during operations including effective management of F&B outlets, supervision of pools and rides, and effective emergency response plans that are aligned to the IFC PS4 needs. (See ESAP#1).

The future hotel operator for both the Ha Long and Vientiane projects applies NFPA 5000: Building Construction and Safety Code (or equivalent) standards as a condition of hotel design. Heat and smoke detectors are placed in rooms and public spaces. Fire exits and dedicated lifts for evacuation of disabled persons, as well as refuge rooms are integrated in to the building design. Air conduits can be automatically closed to create negative pressure within the locations where smoke is detected. At time of building commissioning buildings are assessed to determine compliance to the required fire safety standard by an operator appointed third party expert and forms part of the commissioning checklist. As per ESAP # 7 BIM Land will submit a copy of the L&FS review performed during the commissioning phase and will submit a certification that the L&FS systems has been implemented in accordance with the accepted design and the L&FS section of the WBG General EHS Guidelines. As needed a corrective Action Plan with a time frame for implementation will be submitted after the review. Completion will not be certified until completion of the Action Plan. Compliance to national fire and safety standards is the responsibility of the project subsidiary with annual inspections conducted by local fire safety departments to assure compliance.

Community Health and Safety: Food safety is managed with the hotel operator maintaining HACCP certified for all F&B outlets within the operator’s sphere of control. This is controlled by the operator management that administer the system. Similar approaches shall be applied for F&B outlets in the IFC supported projects. (See ESAP #1).

Water will be pretreated before being used in the future project facilities and be regularly tested to ensure no bacterial build up. The future hotel operator IHG has in place Legionella Risk Assessment and Control Protocols that applies to all water use within the sphere of the operators control. Measures include: (i) maintaining hot water at or above 60 degrees centigrade (C); (ii) designing pipe infrastructure to mitigate opportunities for optimum conditions for bacterial growth; (iii) avoiding stagnation; (iv) regular cleansing of water and ventilation systems; (v) reduce time frames of water being stored; and, (vi) maintain cold water systems temperatures below 20 degrees C. The protocol outlines indicators of outbreaks and risk management systems to be applied to reduce risks. This document is supplemented with the Legionella Incident Response, which outlines the steps to identify at risk situation and manage the process to minimize risks once identified.

The future hotel operator Leisure Safety and Guidance Note sets out the minimum expected standards for swimming pool water testing, treatment, monitoring, and use of chemical controls. All prescribed measures are within GIIP based approaches for maintenance of pools and hot tubs/whirlpools.

Based on the L&FS standards applied, food and water safety approaches, it is considered that future hotel operator for both Ha Long and Vientiane projects approaches are compliant to IFC PS4 needs.  It is unclear on the likely future water them park operator and the Citadines serviced apartments. (See ESAP #1).

Security Personnel: All external security staffs (external to the buildings and grounds, responsible for perimeter patrols) are outsourced, with all in house security staffs recruited and trained by the project subsidiary and the hotel operator. All security staffs have references checks conducted prior to recruitment and have to adhere to a code of conduct for operations. No security staff are armed and only have the right to detain suspects until national enforcement agencies arrive.

   The proposed projects are small in nature and all projects are confined to land owned and controlled by the BIM Land company in areas surrounded by other tourism developments in the case of Vietnam or in developed urban settings in the case of Lao PDR. In Vietnam, as part of the EIA and construction permitting process the project owner is required to consult with the people’s communes, local peoples’ committees and representatives of affected communities, however the level of consultation is limited and mainly focused on local institutions.  Public consultation for the ESIAs to be prepared for this project and ongoing stakeholder engagement shall be conducted in line with IFC PS1 requirements and the stakeholder engagement and grievance redress procedure to be developed by BIM Land as part of its ESMS. Construction companies shall be required to display on public areas a “notice of intent to develop” and a phone number is available for queries. At all times during construction a public notice should be on display to enable stakeholders to report concerns.   (see ESAP #1).

   Contact Person: Tran Thi Thu Phuong

Company Name: BIM Land Joint Stock Company

Address: 3rd floor 51 Xuan Dieu, Tay Ho, Hanoi, Vietnam

Email: Phuong.ttt@bimgroup.com

Phone: +84 4 3719 7214

Facsimile: N/A