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 anyway the company has developed appropriate policies and procedures to meet relevant requirements as described under 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 acquired 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 two E&S Action Plans agreed (ESAPs) with IFC as part of IFC’s investments in PTB, the company developed and implemented the E&S policies and procedures required to meet IFC Performance Standards.  Actions of the two ESAPs were satisfactorily completed.

Under IFC’s third investment in PTB, the company anticipated providing new coverage in rural areas, so PTB developed new policies and procedures to ensure that any potential rural site is assessed for natural and critical natural habitat, and for indigenous peoples, consistent with the requirements of PS6 and PS7.  Since then, PTB has not built towers in areas with indigenous peoples, and PTB has otherwise implemented its policies assessing sites for natural and critical natural habitat.

Under IFC’s proposed new investment in PTB, the acquisition of K2-Tower a company that deploys small cell infrastructure in Brazil, is not expected to change the type or pattern of E&S risk in PTB’s operations, as small cell infrastructure has a smaller E&S footprint than does PTB’s existing infrastructure. As a result, E&S risks in small cell infrastructure can be fully managed by PTB’s existing E&S policies and procedures.

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 the company will apply those policies and procedures to the acquired operations of K2-Tower. PTB is committed to continuous improvement as needed, and 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 and small cell infrastructure, will comply not only with all applicable E&S laws and regulations of Brazil, but also with IFC’s Performance Standards.

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, and has satisfactorily reported E&S performance to IFC.                                                                 

PTB employs about 82 workers directly and 2 workers indirectly through subcontractors.  After IFC’s first investment in PTB, a collective bargaining agreement was signed between PTB and its workers’ union in 2018, 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 they include written procedures for handling any harassment and employee grievances. All of these policies and procedures will be implemented in K2-Tower, where labor and working conditions will be aligned with those of PTB.

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, and that core contractors apply PTB’s procedures for handling any harassment and employee grievances.                                                

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 PTB 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 the company complies 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 Participações S.A.

Engenheiro Luís Carlos Berrini Avenue, 105, Edifício Berrini One, 32º floor

São Paulo, São Paulo 04571-000

E-mail: mgiusti@phoenixtower.com.br

Tel: +55 (11) 2508-8700