Considering the nature of business operations and project activities and based on IFC’s review during project appraisal, there are no risks and anticipated impacts associated with the requirements of PS 6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources); PS 7 (Indigenous Peoples) and IFC PS 8 (Cultural Heritage) for this proposed project. The exact route for the fiber network is yet to be defined and hence E&S screening will be covered under the procedures of the management system as described under PS1. A chance find procedure will be part of the company’s management program, as described under PS1, which will be applied in the event that cultural heritage is discovered during project construction.

 This is a Category B project, according to IFC’s Environmental and Social Sustainability Policy (2012). Based on information reviewed during the appraisal, it is expected to have limited adverse environmental and social risks and impacts that are few in number, short-term and site-specific, and can be avoided or mitigated by adhering to recognized performance standards, procedures, guidelines and design criteria as described in the following sections.

Key E&S issues associated with the project and which were reviewed at appraisal included (i) adequacy of OCL’s environmental and social management system to guide effective management of E&S aspects of the business; (ii) adequacy of OCL’s organizational capacity to assess and manage E&S risks and issues associated with laying of the fiber infrastructure, construction and management of the data center and routine infrastructure maintenance activities; (iii) labor management and working conditions for direct staff and contract workers, especially on OHS, grievance management, management of all forms of harassment (including gender-based harassment) and equal opportunity; (iv) energy efficiency; (v) management of hazardous materials, fuel (for backup power) and wastes; (vi) security risks; (vii) land acquisition and land access; and (viii) the company’s stakeholder engagement mechanisms.

Environmental and Social (E&S) Policy and Management System:

While the company does not have standard documented procedures for assessing and managing environmental and social risks, it has some policies and procedures that constitute elements of an Environmental and Social Management System (ESMS).  These elements are informed by the Health, Security, Safety, and Environmental Policy. To appropriately address the scale and range of risks posed by OCL’s operations, the company will develop a corporate level ESMS aligned with IFC Performance Standard 1 and commensurate to the level of risks associated with the company’s business activities. Specifically, the ESMS is to include: an overarching policy statement; objectives and targets; the definition of an organizational structure and relevant roles and responsibilities.  Environmental and Social Management procedures to be developed and implemented as part of the ESMS include: (i) Labor and Human Resources; (ii) Environmental Health and Safety (EHS) procedure; (iii) Occupational Safety and Health procedure; (iv) Waste Management Plan; (v) Emergency Preparedness and Response Plan; (vi) Stakeholder Engagement Plan (that includes an External Communication and a Grievance Mechanism); and (vii) a Community Health and Safety procedure, (viii) Security Management Procedure, (ix) E&S Risks and Impacts Screening and Assessment Procedure, (x) Contractor E&S Management Procedure, (xi) a Land Acquisition Procedure and (xii) chance find procedure. (ESAP #1).

Identification of Risks and Impacts:

As required by Malawi Environmental Protection Authority, OCL will commission Environmental and Social Impact Assessments (ESIA) to identify and assess E&S risks and impacts for the installation and operation of fiber-optic cables and for the construction and operation of the data center. OCL will ensure social aspects are included and the ESIA is carried out in compliance with the national requirements, and consistent with the IFC PS requirements. (ESAP #2). The ESIA reports will be disclosed locally and will be disclosed together with this ESRS when it will become available. Land for the construction of the data center in Lilongwe has already been acquired through a private sale. Further land access requirements relating to infrastructure and maintenance are detailed under Performance Standard 5.

There are no specific set of E&S risk management procedures documented by the company to screen for the E&S risks during project design and development and to guide E&S compliance by such contractors. As such, the ESMS, under ESAP #1, will include E&S risk and impact assessment and management procedures to guide risk identification and management across the business, consistent with IFC’s Performance Standards.

Management Programs:

OCL has guidelines on how to handle environmental impact when constructing optic fiber link. While the contracts with operations and maintenance (O&M) contractors include technical guidelines and specify contractor’s requirement to comply with national statutory requirements, the requirements for E&S is limited to water use and solid waste management.  OCL will review and upgrade the guidelines, including social and community health and safety aspects and will develop a standard operating procedure (SOP) for contractors’ management.  The SOPs will form part of the contractor procurement procedures and contract agreements to ensure that all contracted parties, including construction contractors and O&M contractors, meet the company’s policies and comply with the project E&S requirements (ESAP #3).

A framework Environmental and Social Management Plan (ESMP) to be developed as part of the ESIAs for the fiber-optic cables and for the data center (ESAP #2) will define the project commitment to risk management and the mitigations required during construction and operation phase. Contractors will be contractually required to develop E&S management plans, prior to project implementation. 

Organizational Capacity and Competency:

In the current operations, the Chief Operations officer and the Chief technical officer are responsible for E&S during O&M. The company does not have a trained environmental, health and safety professional to effectively discharge this function and coordinate with other responsible officers in implementing the ESMS. Given the planned operational expansion, OCL understands the need for a more formal E&S management organization and will recruit an E&S officer, to coordinate the implementation of the ESMS and effectively oversee E&S risk and impact assessment and management during project development and implementation and during routine operations and to carry out contractor E&S supervision (ESAP #4).

Emergency Preparedness and Response:

OCL has a Health, Life and Fire safety procedure which does not include an Emergency Preparedness and Response procedure (EPRP). As part of ESAP #1, a corporate level Emergency Preparedness and Response Plan will be developed that cover emergency triggers, emergency types, roles and responsibilities, equipment types and locations, emergency contacts, drills and training. Similarly, a project-level EPRP will be developed as part of ESMPs under ESAP #2.  The EPRP will include protocols to provide appropriate information to potentially affected communities and relevant government agencies.

Monitoring and Review:

For routine operations, the Environmental Health and Safety (EHS) Management Procedure to be developed as part of the ESMS (ESAP #1) will include a monitoring and audit protocol to streamline the type, quality and frequency of monitoring and audits throughout the company’s operations and projects.  The monitoring and reporting requirements for the data center project will be defined as part of the project ESMP. During operations, the company will implement the monitoring, reporting and management review procedures developed as part of the corporate ESMS.

Procedures for monitoring E&S management programs will be included as part of the review of the guidelines on how to handle environmental impact when constructing fiber-optic link and will include SOPs for internal audits and inspections to verify compliance and regulatory requirements (ESAP #3).

 The company employs a total of 45 employees (81% male and 19% female). The majority of these employees are within the technical division. In addition, the company also currently employs 18 casual laborers on a six-month term contract as well as a receptionist sourced through a third-party service provider. In accordance with their license agreement, at least 50% of executive management are Malawian and less than 5% of the remaining staff are foreign nationals.

Human Resources Policies and Procedures:

OCL’s Human Resources (HR) function is managed by the HR and Administration Manager who is supported by an administrative assistant. The HR and Administration Manager reports directly to the Chief Finance and Administration Officer (CFAO) who has ultimate oversight and responsibility of all HR matters including administration and implementation of HR policies and practices, recruitment, induction, grievance management, learning, development and performance management.

OCL has developed and adopted a Conditions of Service (came into effect in June 2019) that presents the rules, regulations and practices applicable to all employees. The document is based on the requirements of the Malawi Employment Act (2011) and outlines the conditions of service, including allowances and benefits, rights, responsibilities, obligations and limitations of all staff categories. The Conditions of Service are in compliance with the current labor laws of Malawi and constitute the basis for the contract of employment between OCL and all its employees. The Conditions of Service are communicated during quarterly town hall meetings, weekly working group meetings, posted on the company’s intranet and all new employees are provided with a hardcopy and oriented on the requirements and details.

In addition to the management of labor and working conditions, the Conditions of Service also detail other applicable and relevant workforce and HR related policies and procedures including the Code of Ethics, Health, Safety, Security and Environmental (HSSE) Policy, Disability Policy, Sexual Harassment Policy, Fraud Policy, Training Policy, Grievance Procedure and Recruitment Procedure. OCL have also implemented a Code of Conduct and Work Ethics that covers issues relating to conflict of interest, confidentiality, use of company property, harassment, alcohol and substance abuse, fraud, HSE and all forms of discrimination.

All procurement is managed through the Procurement Officer who is responsible for ensuring compliance against the company’s policies and procedures. The Procurement Officer reports directly to the Head of Compliance and Legal. Currently OCL do not have a Suppliers Code of Conduct which will be developed as a part of the ESMS (ESAP #1).

Working Conditions and Terms of Employment:

OCL’s working conditions and terms of employment are largely dictated by Malawi’s Employment Act and detailed in the Conditions of Service. All employees are provided with written letters of appointment that detail their terms of employment as per the Conditions of Service. This includes the effective date, probation period (between 1 and 3 months), work hours, responsibilities and duties, conflict of interest, transfers, remuneration, promotions, housing, transport and leave entitlements.

Working hours at OCL comply with relevant national labor regulations of the country which is 40 hours per week. Should an employee exceed this number, it is considered as overtime which is compensated at a rate of one and a half times for normal hours and two times for holiday hours. Network Operations Center (NOC) Engineers are split into day and night shifts while fiber technicians’ shifts are variable dependent on call outs and faults.

Remuneration is administered as per the company’s Remuneration Policy. Packages are based on an employee’s qualifications, experience and performance. OCL pays a minimum of 28% above the national recommended minimum monthly salary (currently K35,000.00). Salaries and performance bonuses are reviewed regularly together with market movements, regular remuneration surveys and performance appraisals.

OCL recognizes the importance of education, training and development of its employees. Within the context of the formal Performance Appraisal System, OCL identifies individual education, training and development requirements of employees. This process is defined in the company’s Education, Training and Development Policy.

Workers’ Organizations:

OCL subscribes to the requirements of the Malawian Labor Relations Act whereby every employee has the right to join or not to join a trade union or workers organization of their choice. The company’s Industrial Relations Policy provides guidance on the communication and negotiation approach with labor unions and workers organizations, which is based on open, fair and constructive dialogue.

Currently none of OCL’s employees are members of a formal union, however, there is an Employee Management Consultative Committee (EMCC) in place with four representatives that acts on behalf of employees. There are currently no collective bargaining agreements in place.

Non-Discrimination and Equal Opportunity:

OCL are committed to a workplace free from discrimination and promote equal opportunity among their employees. Non-discrimination and equal opportunity are detailed across several platforms and policies including OCL’s Recruitment Policy which is based on merit and equal opportunity.

The Code of Conduct and Work Ethics details the company’s approach to harassment, including sexual harassment and discrimination. The management of sexual harassment is further detailed in a standalone Sexual Harassment Policy which condones harassment in the workplace and details types of harassment, procedures for reporting, investigation and responsibilities.

In addition, OCL have also implemented a HIV/AIDS Policy looking to eliminate stigmas and discrimination associated with the disease as well as a Disability Discrimination Policy focused on fostering a diverse workforce with equal opportunities for people with disabilities.

Retrenchment:

OCL have developed a Redundancy and Retrenchment Policy in alignment with the requirements of Malawian labor laws. The process includes meeting with employee representatives and / or unions where applicable, feedback to affected employees, eligibility criteria and payment of retrenchment packages. Retrenched employees are entitled to applicable notice, cash in lieu of leave, pension payments, transport allowances and severance allowances calculated according to the length of service.

OCL has not undergone any recent retrenchment despite increased pressure emanating from the COVID-19 pandemic, and no future retrenchment is currently anticipated.

Grievance Mechanism:

OCL have implemented an employee grievance procedure to ensure that there is a formal consultation channel to raise and manage grievances. In addition, the company has a dedicated representative to support and assist employees through the process.  The grievance procedure is based on five progressive stages whereby a grievance can be elevated should it not be satisfactorily resolved. This involves raising the grievance with the immediate supervisor, manager/representative, head of department, head of division and lastly executive management.

Currently the grievance procedure does not detail alternative platforms for submitting a grievance, nor does it make provision for both anonymous and gender specific complaints. Lastly, the grievance procedure does not make provision for third party mediation and arbitration should it not be possible to resolve the grievance internally. OCL will be required to update the current grievance procedure to include these requirements (ESAP #5).

Protecting the Workforce:

The company’s Conditions of Service states that all employment practices are in accordance with the relevant Malawian legislation including the requirement that no person between the age of 14 and 18 shall be employed in an occupation that may be harmful to their health and/or prejudicial to their school attendance. The age of potential employees is also verified during the recruitment process.  As per ESAP #7, this requirement will be extended to contractors / third parties through the contractor specification process.

Occupational Health and Safety:

OCL have developed and adopted an Occupational Health and Safety (OHS) Policy in accordance with the Malawian Occupational Safety, Health and Welfare Act. The OHS Policy details management and employee responsibilities and safety procedures. OCL also provides the necessary Personal Protective Equipment (PPE) to their technical staff who are required to wear it while on duty.

OCL has also implemented Life and Fire Safety (L&FS) which is provided by a local accredited service provider. There is also a L&FS committee made up of nine members. Training of employees is conducted quarterly, with the last training completed in July 2020. The process is independently audited on an annual basis. OCL is also member of Medical Society of Malawi (MASM) who provide medical services should an accident or emergency occur. All OCL employees are eligible to join the company medical scheme, are provided with life insurance (three times their annual salary) as well as workers compensation covering injury and death.

In the past three years OCL have not recorded any fatalities, non-fatal injuries, lost workdays or vehicle collisions; however, there is currently no formal risk assessment and incident management and reporting procedure which will need to be developed as a component of the OHS Policy and will cover both direct employees and contract workers (ESAP #6).

To manage the impact of COVID-19 on the business and employees, in April 2020 a COVID Steering Committee was established. The primary role of the committee is to monitor the evolving situation in the country and business, ensure compliance with the guidelines provide by the World Health Organization and the Ministry of Health, develop appropriate mitigation and management measures and ensure continuous updates are provided to employees. All employees were required to conduct home based work between May and September 2020. The return to office process has included limited staff numbers, monitoring of staff symptoms and strict sanitization procedures.

Workers Engaged by Third Parties:

OCL engage contract staff, consultants and casual staff for the completion of specific tasks. They are not considered as employees and hence are not entitled to employee benefits.  The company has developed an Employment of Contract Staff and Consultants process that details the contracting process, however, does not provide any detail on how potential third-party service providers are vetted or monitored. Furthermore, it does not detail how OCLs E&S policies and procedures are applicable to third party service providers. As part of the project, OCL will develop and implement a third-party / contractor selection and management process (ESAP #7) that will include the vetting and ongoing monitoring of contractors’ safety, compliance with labor law, and compliance with OCL health, environmental, working conditions and labor standards and policies. In addition, the contractor management process will ensure that all contractors have access to the existing OCL employee grievance mechanism should they not have a suitable internal procedure available.

 Resource Efficiency:

Energy: Grid electricity is the main energy source for OCL operations. The energy is used to power both operations and offices. Currently, the company does not record energy use, saving or efficiency initiatives, or undertake energy audits. Given the relevant addition of a data center the company will develop templates and record monthly energy consumption, for efficiency planning across the business. Their performance will be reported. The relevant procedures will be part of the ESMS under ESAP #1.

Water: OCL utilizes municipal water for majority of its operations. Quantities are limited and primarily used for routine administrative, sanitary and cleaning purposes. No significant additional water us is expected due to the project. The additional requirements will mainly be for similar purposes as above.

Greenhouse Gas (GHG) Emissions: Potential emission sources from routine administrative operations are mainly related to electrical consumption, back-up generator and vehicle use and are relatively insignificant. GHG emissions, associated with electric energy consumption for the operations of the data center, are estimated at 975 tons of CO2-eq/year.

Waste and Wastewater Management:

At present, the main wastes generated from OCL operations are office general wastes, wastewater from cleaning activities and non-hazardous wastes occasional from equipment repairs. Wastewater from the operational facilities, mainly sanitary wastewater, are discharged into municipal sewers. A Waste Management Procedure including e-waste for the operations will be developed as part of the ESMS (ESAP #1). Waste generated as part of project construction will be managed as part of the ESMPs developed (ESAP #2)

Hazardous Materials Management:

OCL does not store significant quantities of hazardous materials. Some chemical cleaning agents and equipment repair materials would fall into this category but are few in the operations. However, during project implementation, the nature of work, equipment and processes may involve use of various forms of hazardous materials (including fuel for stand-by generators and equipment). Procedures will be developed in the ESMS (under ESAP #1) to manage fuel and hazardous materials in the company. All fuel storage tanks at the data center will be designed and constructed to meet international standards, including adequate secondary containment and a documented spill response procedure.

 Community Health and Safety:

Whilst OCL’s interaction and impact upon local communities is relatively limited and contained, they currently do not have an integrated and documented process for identifying, assessing, managing and recording community related health and safety risks associated with activities such as backfilling, driving, excavating, trenching, use of hazardous substances, housekeeping, lockout (electrical), scaffolding, site establishment and traffic control. Furthermore, E&S considerations relating to infrastructure design, installation and maintenance are currently managed by the technical teams, hence community health and safety considerations and implications are not necessarily adequately considered during the design process. An integrated risk assessment process will be developed and adopted as a component of the ESMS (ESAP #1). In addition, community health and safety considerations, particularly pertaining to infrastructure installation and maintenance, will also be included as a component of E&S risks and impacts screening and assessment procedure (ESAP #1) and the contractor management procedure (ESAP #7). In addition, appropriate information relevant to the project-level Emergency Preparedness and Response Plans, developed as per ESAP #2, will be provided to potentially affected communities and relevant government agencies.

Transportation Safety:

OCL currently has 11 vehicles in their fleet which are managed by the HR and Administrative Manager. All drivers are governed by the company’s Driving Policy which requires a clean driver’s license, formal testing and certification and a zero-tolerance approach for driving under the influence of alcohol. In addition, all drivers are expected to undergo defensive driving lessons. These requirements will be extended to all contractors through the contractor management procedure (ESAP #7).

All employees, as per the Motor Vehicle Policy, are required to report any incidents and accidents including the completion of an accident report. This process will be incorporated into the overall incident management and reporting procedure as per ESAP #6. All contractors will also be required to report any incidents through this procedure, which will be included as a component of the contractor procedure (ESAP #7).

Security Personnel:

OCL utilizes accredited private security companies (G4S and Securicor) to provide security and access control at their network operations centers as well as to conduct routine route patrols and inspections. Private security guards are not armed. In addition, armed local police provide security to employees when required to work at night in remote or potentially dangerous locations.

Security is managed through the HR and Administrative Manager. Currently the company does not have a Security Management Plan informed by an ongoing risk assessment process which will be developed (ESAP #8). The Security Management Plan and risk assessment will be developed and implemented in accordance with IFC Performance Standard 4, including the requirements for vetting and monitoring of all security provided through third parties and the availability of a community grievance mechanism as detailed in ESAP # 10.

 The company’s current stakeholder engagement approach, including engagement with local communities, traditional leaders and local / national government, is largely driven and guided by the necessary compliance and licensing requirements. The company engages through face to face meetings, local newspapers, and social media. Due to the lack of a formal community grievance mechanism, the only options currently available for community members are r submit grievances through local government offices or traditional leaders.

The company will develop and implement a stakeholder engagement procedure as a component of the overall ESMS (ESAP #10). This will include mapping and identification of relevant stakeholders, engagement and reporting requirements, methodologies and frequency, and a PS compliant community grievance mechanism.

OCL have developed a Corporate Social Responsibility (CSR) Policy detailing their approach and strategic objectives relating to CSR. The company’s CSR initiatives are focused on environment, health (in particular HIV/AIDS), and education.

 Contact Person: Chukambiri Nchilamwela, Chief Technical Officer

Company Name: Open Connect Limited

Address: Old Air Malawi Complex; Robins Road; P.O. Box 31001, Blantyre 3 Malawi

Email: chukanchilamwela@ocl.mw

Phone: +2651828903