As the project will not require any new land, no new land acquisition nor related involuntary physical or economic displacement is expected; thus PS5: Land Acquisition and Involuntary Resettlement does not apply. PS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources will not apply to the project given its location within the confines of the existing footprint of the facility located on the land that was previously cleared and levelled in a highly-modified habitat and well-developed industrial complex.  No Indigenous People have been identified in the areas influenced by the project’s activities and thus PS 7: Indigenous Peoples does not apply; this similarly applies to PS 8: Cultural Heritage as all the areas on which construction is to occur have been previously developed for industrial use and there is no evidence of presence of any cultural heritage.                                             

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability as the potential adverse E&S risks and/or impacts which are generally site-specific are largely reversible and can readily be addressed thorough mitigation measures. Based on the available project information, key project related E&S issues and risks include the company’s capacity and systems to manage E&S performance during construction and operation, management of labor relations and working conditions for its employees including those employed through contractors, occupational health and safety during construction and operation.                                                   

 Identification of Risks and Impacts

Risks and impacts for the proposed project were addressed in the ESIA prepared by an independent consultant for Line II (Project #40420).  However, the Line II Environmental and Social Management Plans will be updated to include FCU II.  Key environmental plans include management of hazardous wastes, occupational health and industrial safety, operational safety and emergency response plans, all of which will be updated.

Policy

IEFCL has an overarching E&S policy and principles that guide the management of the (E&S) issues across IEFCL’s operations based on the IFC PSs. The policy has been developed based on values of integrity, excellence, responsibility and respect; driving the business in a responsible and ethical way, personal and professional excellence, superior quality and competitive prices, among others. As the FCU II will be part of Line II, IEFCL’s existing policy will also cover the proposed project.

Management Programs

IEFCL has in place an ESMS to address the EHS and social aspects of its existing operations. For the construction of Line II, the construction contractor is implementing adequate detailed environmental pollution control and occupation health and safety procedures in accordance to local requirements as well as, IFC Performance Standards and WBG General EHS Guidelines.  These will be extended to cover installation of the FCU II unit.

For the operation of FCU II, IEFCL will extend and apply the EHS procedures already developed for FCU I.  Furthermore, as part of the review/updates to the EHS procedures for the operation of Line II, IEFCL will include the relevant EHS aspects resulting from the installation of FCU II, such as management of hazardous waste, emergency response plans, qualitative risk assessment, etc.

Organizational Capacity and Competency

IEFCL has an established EHS and Social Department. It has an EHS team coordinated by the EHS manager reporting directly to the Chief Technical Officer of the company. IEFCL also contracts additional external consultants for activities such as environmental assessments, environmental audits and environmental monitoring as and when needed. Labor and social issues in IEFCL are managed by Human Resources, Industrial Relations and Community Relations and Development Departments respectively.

Emergency Preparedness and Response

IEFCL will further update the Emergency Response Plan (ERP) to be developed for Line II to also include FCU II (see Action No. 1 of the ESAP.) The ERP will cover potential emergency events such as toxic and flammable gas releases and spread, liquid hydrocarbon spill, fire, gaseous and liquid hydrocarbon leak, explosion of vapor cloud or pressure vessel, etc.

The construction contractor is implementing the corresponding emergency response plans and has qualified personnel and equipment to adequately respond to potential emergencies while constructing Line II and later on FCU II. 

IEFCL’s fire safety department has dedicated qualified staff as well as dedicated equipment (i.e., fire engines, emergency response vehicle, water tender, mobile foam trailers, multipurpose trucks and hydraulic lift platform) available 24 hours. There is also a dedicated emergency response room which includes a visual display of all the manual call points and gas and smoke alarms on site. IEFCL’s ongoing program of site evacuation and fire drills at different plants or aspects of operations will be expanded to include FCU II once it becomes operational. Port Harcourt will continue supporting the company through its two fire stations in the event of any emergency.  Furthermore, IEFCL is already an active participant of the already-established Emergency Response Mutual Aid Organization organized by the industries in the area.

Monitoring and Review

IEFCL has in place an E&S monitoring plan for the existing Line I and for Line II currently under construction. The plan includes operational parameters to be measured (i.e., stack emissions, air quality, noise, treated liquid effluents, workplace conditions, etc.) as well as monitoring frequencies. Ongoing monitoring of ambient air quality during construction (Line II) and operation (Line I) indicates that the concentrations are within the national standard limits and those defined in the WBG General EHS Guidelines, Table 1.1.1. 

Quarterly point source monitoring of emissions (i.e., primary reformer stack, boiler stacks, and the thermal power plant stacks for SO2, NO2, CO, oxygen and carbon dioxide) associated with Line I indicates that the measured concentrations are within the WBG General EHS Guidelines, Table 1.1.2.  As part of the project, IEFCL will extend the monitoring plan to FCU II. 

IFC and other lenders will maintain an independent consultant to review the compliance of the project with the applicable E&S requirements as well as with the ESAP as part of their own internal review requirements.  

IEFCL will complete a HAZOP for FCU II during detailed engineering as indicated in action No. 2 of the ESAP and, as part of the commissioning, will confirm all corresponding finding/recommendations are being implemented. Furthermore, it will also update the qualitative risk assessment (QRA) being prepared for Line II to include FCU II, as indicated in action No. 3 of the ESAP, to ascertain that final design will not pose negative risks to communities or environment.                                                 

  As part of the appraisal of Line II, IFC commissioned a labor audit conducted by a qualified independent consultant to investigate and enhance the labor practices of the company.  The audit provided a series of recommendations including: (i) implementing an annual salary increment in line with inflation/cost of living in the area as well as performance increments on salaries; (ii) developing and implementing an employee communication and engagement plan notifying employees on the increments and revised salaries of the individual through personal letters and notice boards, and (iii) maintaining continuous employee engagement and feedback process for grievance identification and resolution, among others. 

IFC’s ongoing monitoring of IEFCL indicates that IEFCL has effectively implemented the audit recommendations as detailed in following sections.

Workers are grouped into three types: management, senior staff (i. e., technologists, engineers) and junior staff (i.e., operators.) IEFCL’s labor forces is as follows: Line I, has 786 employees of which 384 are direct employees (344 male and 40 female), and 402 contracted employees (357 male and 45 female). Line II, which currently has around 1943 contracted construction workers (1927 male and 16 female), once operational, will have approximately 200 employees.  After the FCU II project is completed, IEFCL will increase its labor force for Line II by 38 new positions.

Human Resources Policy and Procedures

IEFCL has a Human Resources Development & Industrial Relations (HRD & IR) department responsible for the overall management of human resources including recruitment, training and development of employees. The HR manager reports directly to the CEO of IEFCL. The Company’s HR policy and procedures include aspects related to equal opportunity employment, recruitment, employees’ conduct, employment regulations, salaries, disciplinary code, training and performance management. IEFCL also has an Employee Handbook and a Code of Conduct that sets out the terms and conditions at the company and commits to meeting national labor law requirements. IEFCL’s HR policy is aligned with IFC PS2 requirements including no use of forced labor (i.e., prison labor, indentured labor, bonded labor or otherwise); only hiring employees who meet local minimum age requirements, established workers conditions (compensation, benefits, etc.) workers’ rights to freedom of association and collective bargaining, and grievance mechanisms, among others.

All direct employees receive a copy of the Employee Handbook and the Code of Conduct, and a signed letter of employment when they join the company. The existing policies, procedures and approaches to employment as listed above will be applied to the FCU II employees to be hired for the operation phase.

Freedom of Association, Collective Bargaining

The Company recognizes employees’ right to unionize as an effective way to address their concerns and direct their negotiations through workers representative structures. In line with the Trade Unions Act the junior workers are organized by NUCFRLANMPE and senior workers by CANMPSSAN.  On February 2nd and 28th, 2019, CANMPSSAN & NUCFRLANMPE completed the election of their respective executive council. Presently, the company is negotiating a collective bargaining agreement with both NUCFRLANMPE and CANMPSSAN.

Non-Discrimination

The company’s HR policy also includes provisions related to non-discrimination related to race, nationality, disability, social class, sex, religion and/or political ideas. The HR policy also states the company is an equal opportunity employer that extends equal employment opportunity to all applicants and its selection decisions are merit based.

IEFCL’s minimum hiring age is 18 years old, thus in compliance with the local law and IFC PS2, contractors also abide by the same regulations.  In addition, there is no forced labor in either its or contracted operations, thus in compliance with the local requirements as well as IFC PS 2. No evidence of such was found during the site visit by IFC.

The assessment conducted by the labor consultant during the appraisal of Line II confirmed that the salaries paid to local staff at the time were in line with the salaries in the area for the jobs performed.  This position has been maintained by the measures described below. 

In conformance to IFC’s requirements, the company has three established components for periodic revision of salaries and allowances applicable to both expatriate and local employees. These components include annual salary increments and benefits, performance appraisal increments, and promotions based on clearly explained performance targets, and the periodic re-engineering of the organizational structuring establishing career planning and progression matrix to ensure career progression.  It has also established a training protocol to enhance the qualifications of all personnel by conducting systematic in-country and overseas training to qualify its labor force to perform effectively and to facilitate qualification assessments for merit-promotions.  Specifically, in July 2018, among the local junior staff, 111 moved up from “trainee field operator” to “assistant field operator”, 15 moved up from “assistant field operator” to “junior field operator”, 12 moved up from “junior field operator” to “field operator”, and 2 moved up from “field operator” to “senior field operator”. Furthermore, among the senior local staff, 35 were promoted from “trainee technologist” to “technologist”, 16 from “technologist” to “assistant panel engineer”, and five from “assistant panel operator” to “panel engineer”.

IEFCL also has well established department committees to identify high-potential candidates from the entire pool of employees regardless of nationality.  These practices are been fully disseminated among workers and during the appraisal visit it was evident there is a healthy labor climate.  These actions reflect not only the company’s ongoing efforts to enhance its terms of employment, but also to respond to similar concerns raised by employees in the context of the CAO complaint.

Management of Contractors

IEFCL will maintain the same systems and processes for constructions as were used for Line I. The technology licensor, engineering & construction contractor(s) have demonstrated international experience in the development of similar projects. They have and continue implementing a sound ESMS in accordance with the international ISO 14001 and OSHAS 18001standard requirements. Employment during construction will continue to be the responsibility of the construction contractor. IEFCL monitors the performance of the contractors related to labor aspects, among others, to ascertain they are in line with the national laws and IFC PSs requirements. Further there is a contractual obligation incorporated in the agreement with contractors to comply with IFC PSs requirements. The demobilization plan to be developed by the EPC contractors for Line II will cover the demobilization for this proposed project. 

Occupational Health and Safety

IEFCL’s design philosophy is to provide process safeguards to protect personnel, equipment and the surrounding communities. For the operation of Line I, IEFCL has a suite of programs, safety manuals and procedures aligned with IFC PS2. IEFCL conducts periodic monitoring and measurement of work place conditions as required by Nigerian law and WBG General EHS Guidelines. The EPC contractors’ health and safety management plans aligned with IFC PS2 requirements will continue its implementation during this proposed project.

Specifically, at Line I which is in operation phase, key safety issues are discussed daily in the morning meeting and remedial actions are shared with all.  Workplace safety officers patrol the site to identify and resolve Unsafe Acts (UA) and Unsafe Conditions (UC). A structured permit to work (PTW) system is in place for all the non-routine works to be carried out in the plant area, safety committee meetings are held monthly.  To address and mitigate key safety issues, selected plant personnel are empowered as safety coordinators to identify and bring up safety aspects for discussion and resolution. The use of Personal Protective Equipment (PPE) is compulsory and enforced.  Furthermore, Near Miss (NM) reporting boxes are installed at strategic locations and all employees are encouraged to report NM, as well as UA and UC. These are investigated and resolved.

As part of its management system, the company has established safety Key Performance Indicators (KPIs) including: (i) record of NM, UA and UC, (ii) management of change (MOC) executed for each change, however small it may be, (iii) safety committee meetings, (iv) regular PTW audits, and risk assessment for all important process changes. The KPIs are tracked on a monthly basis to check and determine the adherence by the employees.

As part of the IFC appraisal of Line II; IFC reviewed the procedures and systems for Line I. Line I has adequate procedures for work in heights and improved welfare conditions in heated and noisy areas, even though workers are not permanently located in these areas. IEFCL conduct periodic monitoring of temperature, noise, and vapors and the values reported have been in accordance to the IFC General EHS guidelines.  As needed, it provides heat and hydration breaks whenever there are occasional works in those areas. The company also enforces compulsory use of Personal Protective Equipment (PPE) in areas of exposure to noise, vapors, etc.

The company will develop the process safety procedures for FCU II, which will be based on those already developed for FCU I (see action No. 4 of the ESAP).  As for FCU I, FCU II will also have safety release systems (safety and relief valves) directed to the closed flare system, emergency shutdown system, deluge system, fire and gas detection systems, etc.

Workers Grievance Mechanism

As part of the recommendations from the labor audit conducted as part of Line II appraisal, the company further enhanced its grievance mechanism by clearly setting the steps for submittal, processing, and resolution of grievances; as well as response times.  Moreover, acknowledging that anonymous grievances and complaints are also important, it included provisions to address those as well.  IEFCL routinely conducts grievances assessment to identify trends and prevent issues from scaling up. IEFCL has also commenced statistical analysis of grievance as per the recommendations of the independent labor audit commissioned by IFC as part of Line II assessment.                                                

The design of the project is based on established state-of-art and worldwide applied technologies whose performance is both predictable and well proven in operation, so that no significant variations are expected to be found between predicted and actual performance in the field. In addition, the project has been designed to comply with the most stringent of Nigerian Standards and applicable WBG EHS guidelines.

Resource Efficiency Energy and Material Efficiency Projects

Due to recovery of CO2 at FCU II, there is a potential savings of feed and fuel in the primary reformer of the Line II ammonia plant of approximately 2.3 Million BTU/yr. This will reduce annual GHG emissions of Line II by 24,000 tpa CO²e. 

GHG Emissions

Marginal gross GHG annual emissions associated with the operation of FCU II are estimated approximately 6,400 tpa CO2e. 

The recovery of the acid gas in FCU II and supply to the urea plant results in reduction in CO2 emissions. It is anticipated that all the CO2 in the raw gas will be captured and used for urea production. Without the FCU, the CO2 in the fuel gas to the reformer would be released to the atmosphere along with the flue gas. 

Furthermore, the reduction in GHG emissions through CO2 recovery in FCU II, by reducing the venting of CO2 to the atmosphere from the primary reformer flue gas, will be of 0.02 metric ton CO2 / metric ton of urea.  Thus, the proposed project will reduce emissions from Line II by approximately 94,000 tpa CO2e.

There the net effect of FCU II is to reduce GHG emissions by approximately 112,000 tpa CO2e. 

Air Emissions and Ambient Air Quality

The air emissions for the project will be limited to the flue gas from regeneration heater, which will have low NOx burners.

Water Usage and Wastewater Treatment

In FCU II 350 m3/h of water will be in circulation in closed loop cooling tower for cooling requirement in heat exchangers.  As for current construction and operation activities, the water for this project will be furnished by the on-site authorized boreholes, the filter water package, and the demineralization plant. The anticipated effluent stream to be produced at the regeneration gas dryer system, which will be approximately 1.5 m3/hr, will be passed through an API oil separator, prior to being sent to the IEPL wastewater treatment plant for further treatment. The treated effluent will be within the national standard limits and those defined in the WBG General EHS Guidelines, Table 1.1.1. 

Waste Management

As part of its current ESMS, the company has procedures to ensure segregation, recycling and reduction of wastes.  IEFCL has compiled a Waste Management Plan (WMP) for the existing operations and submits a waste disposal inventory to the authorities on a quarterly basis. The waste management practice shall be extended from those currently practiced at Line I. Waste segregation at source, Reduce, Recover and Recycle philosophy shall be adopted. Waste disposal shall be according to manifest in line with the Federal environmental norms and IFC requirements.

Hazardous Materials

IEFCL will design the project ensuring proper handling of hazardous materials. As part of the project, IEFCL will develop a Hazardous Material Management Program for Line II prior to operation.                                                  

 Community Health and Safety

Potential risks to the surrounding communities from the facility will be further assessed by the QRA as described above.  The risk assessment at detailed engineering design stage, will consider worst-case scenarios such as explosion, fire and leaks based on the facility layout and technology to be used and as needed, it will implement the required measures. 

Similarly, as part of the emergency response procedures, the emergency response plan to be developed for each of the project phases will include the communication to and training of the communities related to response to emergencies and will involve the local authorities in the development of community preparedness planning in the event of a major accident. 

Security Personnel

Security for Line II is being provided as part of the security arrangements for the Indorama complex. This is provided by a multi-layered security detail, comprising of both internal core security management staff and contracted unarmed guards. In addition, as the complex is considered a National asset, public security forces have been deployed by the Nigerian Government to safeguard the complex. These include the Nigerian Police, the Nigerian Army and Mobile Police (MOPOL). The core staff and contracted personnel report internally to the head of security, while the police, army and MOPOL report to their respective headquarters while coordinating with the Company’s security department.

IEFCL ensures that the contracted unarmed guards have background checks for good conduct prior to being deployed to the site. Further majority of security guards are recruited from Host communities. The public security forces are located at strategic locations outside the operational area and are primarily responsible to safeguard assets, and to escort convoys of personnel to the airport.  They only interact with IEFCL’s security personnel in case of emergency situations which may pose a threat to human life or property that may require their involvement and in close coordination with IEFCL’s security manager.

As part of IFC’s requirements resulting from the outcomes of the independent social audit commissioned by IFC as part of the appraisal for the Line II project, the company was required to update the company’s Security Management Plan.  The company conducted a Security Risk Assessment from an external audit agency to identify risks and has updated their Security Management Plan to reflect and respond to these risks. The updated Security Management Plan is guided by the “Voluntary Principles on Security and Human Rights” and has been developed in accordance with the IFC’s PS4 requirements. The updated plan establishes rules of engagement related to public forces onsite to the extent permissible and includes commitments to the Voluntary Principles.  IEFCL has also established security monitoring and reporting plans. The implementation of these commitments will be monitored by the company as part of their existing security audit plan.

As part of the updates to the Security Management Plan and on the ground procedures, the company’s security manager is the person who engages with the public security forces deployed to the site and discusses the general rules of engagement with the officers in charge of public security forces. Furthermore, prior to the arrival of a new deployment, which takes place on a quarterly basis, the security manager coordinates with respective unit commanding officers about human rights training being conducted with the new deployed personnel. In this regard, process of signing Memorandum of Understanding has been initiated with the Army authorities.  

 Responsibility for stakeholder engagement at IEFCL falls within the HR and Community Relations Departments. The Head of Community Relations and Development reports directly to the CEO and also to Indorama Africa Head, and his team comprises of four community relations officers and one assistant community relations officer.  The community relations staff regularly meets with community members in the directly affected communities.  The community relations team also meets with municipal heads and related government authorities.

The company formalized the grievance mechanism process whereby grievances are received, tracked, and resolutions monitored effectively. The grievances can be provided directly to the company’s community relations officers; to the Community Development Committee (CDC – a group setup for the sustainable development of communities in each community in Nigeria) members, or through the Project Advisory Committee (PAC), who then forward them to the company’s community relations officers. The community relations officers pass them to the appropriate company representatives. Feedback is provided through the same channel or directly to the aggrieved party, depending on the nature of the grievances. Since 2007, the company has had a Memorandum of Understanding (MoU) with the host communities which to a large extent governs the terms and conditions of the relationship between IEFCL and the host communities. Thus, the company’s engagement with youth and women has also improved as per the agreements made through the MoU.  Specifically, the company is incorporating a micro-credit scheme for empowering women.                                                  

  IEFCL will disclose in English language the following documents.

- Environmental and Social Review Summary (ESRS)

- Environmental and Social Action Plan (ESAP)

Shortly after publication in IFC’s website, the documents will be available at the following locations for a period of 30 days.

Location: Rivers State

Address: Headquarters,

Eleme Local Government Area,

Eleme, Rivers State

Please contact the following for enquiries or concerns about the environmental and social impacts of this project:

Company:                     Indorama Eleme Fertilizer & Chemicals Limited (IEFCL)

Point of Contact:         Mr. Kendrick Oluka

Title:                             HOD – Community Relations & Development

Telephone Number:  +234 - 8055064248

Email:                            kendrick@indorama.com.ng

Mailing Address: Indorama Complex, East West Expressway, Eleme  

                                       P.M.B. 5151, Port Harcourt, Rivers State, Nigeria          

Website:                       www.iefcl.com