IFC’s appraisal considered the environmental and social management planning process and documentation for the Project and gaps, if any, between these and IFC’s requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and (if applicable) in an agreed Environmental and Social Action Plan (ESAP). Through implementation of these measures, the Project is expected to be designed and operated in accordance with Performance Standards objectives.
PS 1 - Assessment and Management of Environmental and Social Risks and Impacts
Policy
ARG has an E&S integrated management system policy that covers sustainability, environment, quality, and OHS in line with ISO standards and includes a continuous improvement statement. The policy guides the consortium’s operations for all the activities performed under their concession agreement, including construction, improvement works and O&M. It is extended to contractors and is communicated to employees during the induction process, posted in the offices and made available in the Company’s webpage and intranet. Through this policy, ARG seeks to have a positive impact on workers and communities and commits to complying with all legal requirements related to the development of its activities. As part of ESAP item #1 ARG will update its integrated management system policy in line with IFC Performance Standards (PS) and include commitments related to social impacts identification and management, stakeholder engagement, non-discrimination, inclusion and gender equality, and no tolerance of GBVH. ARG will disseminate the updated policy among workers, contractors and stakeholders.
Environmental and Social Assessment and Management Systems
The Company’s integrated management system (IMS) and related procedures are based on ISO standards, including ISO 9001:2015 (quality), ISO14001:2015 (environment) and ISO 45001:2018 (OHS). The IMS is described in ARG’s Management System Plan and its implementation lays within the Quality department with the support of all the technical areas of the Company, including O&M, Construction, Health and Safety, Environment, Land & Easement, Labor and Social. The IMS comprises all the elements deemed necessary by IFC PS1 to effectively “plan, do, check, act” with regards to the E&S outcomes and will be implemented throughout the pre-construction and construction phase and updated for the operations & maintenance phase of the project. To ensure that the IMS implementation is correctly and uniformly implemented throughout the different phases of the concession, the Company will, as part of ESAP item #2, develop and implement a “Company’s ESHS Assurance Plan” detailing all the elements (EHS audits, field inspections, OHS verification protocols, meetings, equipment certification, operators’ competency checks, reporting requirements) that will be implemented to ensure IMS alignment to IFC PS across the Company. The plan will have a strong focus on field-based verifications and will be applicable to the Company, contractors and subcontractors. The scope of the plan will cover construction and operations, since it’s likely that operations will start in phases and/or with segments of the highway operational, while other segments of the road are under construction at the same time.
Identification of Risk and Impacts
The project has two main E&S impact assessment (ESIA) studies and corresponding licenses from 2011 and 2012 from the former concessionaire and operator of the “Ruta del Sol Sector 2”, which correspond to the straight-line sectors of the TM2 highway. These are being revisited by the National Environmental Licensing Authority (“ANLA” for its Spanish acronym) before being issued in favor of ARG. In addition, the project has 12 ESIAs and corresponding licenses from 2012 to 2015 period for the 12 bypass roads of theTM2 highway, of which 7 correspond to bypass roads already built and in operation and are currently under the review of the concession’s Technical Advisor (“Interventoria”) to be issued in favor of ARG, and 5 that corresponds to new bypass roads that the Company will build as part of the concession’s scope, of which 4 have already been issued in favor of ARG and 1 is being revisited by ANLA. For the stretches of the highway that are already in operations and require maintenance and improvement works, the Company has government-approved environmental management plans, (“PAGAs” for its Spanish acronym) which describe the O&M E&S commitments for the concessionaire.
Because of the time elapsed between the ESIAs and the overall licensing process conducted by the former concessionaire, ARG is performing a series of supplemental E&S studies to update the E&S baselines and collect new and current information and data regarding the physical, environmental, social, and biodiversity conditions along the concession’s route. These supplemental studies will inform the Company’s management plans and will allow ARG to assess existing E&S conditions and identify new impact that require additional controls, monitoring or mitigations. The supplemental biodiversity assessment is being conducted by a local internationally recognized conservation foundation. The project design and alignment has not changed substantially compared to the former concession, and all the ESIA-related studies cover the same footprint and area of impact.
In addition to the legal requirements included in the ESIAs, PAGAs, and licenses, ARG has an “Environmental Aspects and Impact Assessment” procedure to assess, measure and mitigate the E&S impacts arising from its activities. Identified E&S risks from all the processes, activities and facilities are registered in an “E&S aspects and impacts identification and assessment matrix”, which details the type of risk or impact for each activity and an assessment of importance, magnitude and probability of occurrence. In addition, ARG has a system to identify and manage all E&S regulatory requirements, keep track of legal obligations and monitor compliance.
To enhance the Company’s IMS and its process of identifying and recording E&S risks and impacts aligned with IFC PS and facilitate the monitoring of E&S commitments from ESIAs, licenses, permits and inherited obligations in a systematic and centralized way ARG will develop a “Consolidated E&S Controls & Commitment Register” that will be part of the ongoing system from ARG to manage all E&S regulatory requirements, centralizing the review of all E&S commitments from ESIAs, PAGAs, licenses and permits, consolidating all the control measures and related E&S monitoring requirements, linking these to the corresponding management and monitoring plans or procedures from the Company, and a system that allows the timely follow up of obligations and corresponding compliance monitoring process. The tool will be developed for construction and later updated for the O&M phase of the project.
As identified in the ESIA, the bypasses are expected to diminish commercial activities of business owners and informal vendors due to the rerouting traffic away from towns and villages. To mitigate adverse impacts on livelihoods, the concession agreement requires: i) ARG to build five Community Commercial Areas (‘CCA’) to provide alternatives for businesses and informal vendors that currently depend on selling goods and providing services to road users, and ii) maintain connectivity between the new road and the bypassed towns to allow businesses to continue providing services for road users. Also, as part of ESAP item # 21, ARG will: (i) Complete the ongoing socio-economic baseline of economically impacted people by the rerouting of the road; and share results with IFC; (ii) Consult with affected people and develop tailored social management plans based on these consultations. Plans to be developed should include all feasible initiatives to mitigate the impacts; (iii) May consider, if only feasible and consistent with outcomes of the consultation, building some measures on ARG’s own social management and community investment plans; (iv) Prioritize vulnerable individuals. Vulnerability criteria will be agreed with IFC; and (v) Share these plans with IFC. Then effective implementation of these social management plans will be assessed during Project supervision.
Management Programs
The Company’s IMS include management programs and plans commensurate to the level of E&S risks and impacts of the project. ARG’s E&S plans and programs include impact identification, risk assessment, emissions control, solid and hazardous waste, environmental noise, vegetation management, environmental compensation, reforestation, management of fauna, emergency preparedness and response, workforce management, equal opportunity, E&S training, security, contractors’ management, land acquisition, community awareness and stakeholder engagement and grievance mechanisms. These programs and plans are in line with Colombian legislation and mostly aligned with IFC PS. They include details on monitoring actions, frequency of monitoring along with performance indicators and are reviewed and revised regularly.
Social management plans included in the environmental licenses cover a wide array of programs, address socio-environmental management, environmental education and training for project personnel, information and community participation, land acquisition and resettlement, support for institutional management capacity, training and environmental education for the surrounding community, hiring of local labor, support for local businesses, and promotion of road safety. These plans aim to mitigate the project's socio-environmental impacts and enhance its benefits to the community. Protocols outline in these programs focused on participation, governance, social inclusion, social management of infrastructure, properties and public services, and general social management.
Organizational Capacity and Competency
The E&S management function includes several positions in five levels as follows: (i) the environmental director is in charge of the environmental management of the Company and is supported by three field supervisors, three environmental representatives, a GIS professional and a Biologist; (ii) the social director is in charge of all social and community-related management aspects and is supported by three coordinators, seven social officers, two social representatives in the field mobile offices and one archaeologist; (iii) the land & easement (L&E) director is in charge of right-of-way acquisition and compensation process, and is supported by three technical coordinators, one legal coordinator, five lawyers, five technicians and two topographers; (iv) the OHS function is chaired by the administrative director, supported by one OHS coordinator, one OHS professional and one OHS supervisor. The HR function is part of the responsibilities of the administrative director as well. The appropriateness of the resources assigned to OHS will be closely monitored by the Company during construction, and in case additional resources are deemed necessary, it will enhance capacity is strengthened. In addition, to enhance the understanding and familiarization of employees and contractors with IFC Performance Standards, ARG will review the E&S training program and include trainings on IFC Performance Standards vis-à-vis the ESAP requirements especially around key E&S risks of the project, including land acquisition and resettlement.
Emergency Preparedness and Response
ARG has an overarching Emergency Preparedness and Response Plan (EPRP) which details potential emergency scenarios generated by both internal and external risk factors, such as spills, fires, and natural disasters. In order to better align the EPRP to IFC PS, the Company will, as part of ESAP item #3, enhance the EPRP covering both construction and O&M phases, since it’s likely that operations will start in phases and/or with segments of the highway operational, while other segments of the road are under construction at the same time. The revised EPRP will follow Good International Industry Practices (GIIPs) and the recommendations set forth in IFC PS, including the EHS General Guidelines and the EHS Guidelines for Toll Roads. The EPRP will identify the most probable risks scenarios for each phase, with due consideration of community health and safety and OHS management for employees and contractors, adequate communications flows and equipment (internal communications and with community leaders and government authorities during emergencies), protocols for the use of first response equipment, and drills. The EPRP will include plans to respond to emergencies that could affect neighboring communities and address civil/labor disturbances. The EPRP will ensure a thorough process to track and learn from actions and recommendations from drills and incidents, and include adequate communication to stakeholders, contractors’ workers, communities and local authorities.
Monitoring and Review
All the E&S areas prepare monthly technical compliance reports to Senior Management assessing the ESHS performance of the Company and reporting on the KPIs established in the PAGAs and other legally required reports. E&S performance and compliance is reported to the Board of Directors on a quarterly basis. The Company has provisions to undertake annual reviews of the IMS. The first review is planned for December 2023. As described in ESAP item #2, ARG will supplement this process through the development of a “Company’s ESHS Assurance Plan” and third-party monitoring of land acquisition & resettlement plan implementation (See ESAP item #16) that will be implemented to ensure IMS alignment with IFC PS across the Company.
E&S Contractor Management
ARG assesses contractors, service providers and suppliers as part of the tender process. Through the due diligence process the Company reviews OHS and E&S performance and practices of prospective contractors, including labor conditions and quality control. E&S requirements and procedures are included in each contract. Contractors are required to adopt and implement the company’s OHS policies, standards and procedures.
Regular audits and verifications to contractors and key suppliers are conducted though monthly inspections, ESHS monthly performance reports and annual contractual audits. The audits assess compliance with E&S requirements and with Colombian legislation, identifying non-compliances, observations and improvement opportunities, reducing risks and mitigating impacts. After the auditing process, the contract managers monitor and track to completion the implementation of any identified non-conformities and corrective actions with suppliers and contractors. The “Company’s ESHS Assurance Plan” mentioned in ESAP item #2 will detail all the assurance elements, such as audits, inspections, field verification protocols, EHS coordination meetings, reporting requirements from contractors that will be implemented to ensure adequate E&S and labor contractor management for construction and for the O&M phases in alignment with the Company policies as well as to IFC PS.
PS 2 – Labor and Working Conditions
As of May 2023, the project is in the pre-construction phase with 143 direct employees and 614 contractor workers, and a total workforce of 757. Just over 50% of workers are from the project’s direct area of influence and approximately 30% are female. The construction phase will commence in December 2023, as per the concession agreement. At the peak of construction, it is expected that the project will have between 3,500 and 4,000 workers.
Human Resources Policies and Procedures
ARG has a Human Resources Policy that establishes the principles and guidelines to guarantee the labor rights of workers, maintain an adequate labor climate, avoid discrimination, and promote equal opportunities and ensure other policies, protocols and procedures respect and promote work with dignity and fair treatment. The policy prohibits hiring children under 18 years of age and forced labor. The internal labor regulations establish the rights and obligations related to labor and working conditions for workers and for the Company and describe the general principles and guidelines for their application, in alignment with PS2. Contractors and subcontractors are required to implement ARG internal policies and regulations, including the Human Resources Policy. As part of ESAP item #4, ARG will develop a stand-alone “Code of Conduct” describing the set of rules, principles, values, employment expectations, behaviors, including GBVH prevention and management and will be widely distributed and applicable to direct workers, contractors and subcontractors.
Working Conditions and Terms of Employment
Contracts with all direct employees specify labor and working conditions. ARG training plan outlines an induction process for all direct and contractor workers that include (i) the vision, mission and general policies of the concessionaire and ANI, (ii) project description, (iii) working conditions and labor relations, (iii) OHS, (iv) road safety and traffic control, and (v) E&S management aspects.
ARG reviews the contractors’ records monthly to ensure that they have made the payments corresponding to the payroll and all their obligations under the Social Security System for all workers. As part of the Company’s ESHS Assurance Plan (ESAP item #2), the concessionaire will include visits to work fronts to verify working conditions, including resting areas, hydration, toilets, sanitary stations, and that workers are aware of their rights and labor conditions as well as of the workers grievance mechanism. These internal audits will include visits to workers accommodations (if any) to ensure conditions are adequate from a health, safety, and security perspective. Audits will be conducted throughout the life of a project, including the demobilization period to ensure workers are informed in advance and all benefits required by law are provided prior to dismissal. Given the size of workforce during construction and based on results of the internal audits and overall performance, ARG will evaluate the appropriateness to implement supplemental independent labor audits from time to time, in order to enhance the overall review process and ensure compliance with working conditions and terms of employment by contractors and subcontractors.
Worker’s Organizations
The concessionaire respects the right of freedom of association of workers, and it is explicitly stated in its internal labor regulations, as required by Colombian legislation and international labor conventions. Currently there are no unions operating in ARG or its contractors, and there has not been a collective bargaining process. As per ESAP item #4 and the implementation of the Code of Conduct, ARG will inform all workers about their right to associate and will provide the necessary conditions for collective action if requested by workers.
Non-discrimination and Equal Opportunity
ARG Human Resources policies, as well as the internal labor regulations, reject all kinds of discrimination and promote equal opportunity. The recruitment program includes provisions to avoid discrimination and establishes minimum requirements of female participation for each phase of the project as follows: pre-construction 10%, construction 10% and operations and maintenance 30%. For the pre-construction phase, as of July 2023, the target has been exceeded. The updated Workers’ Grievance Mechanism will include specific provisions to address GBVH as per ESAP item #5 (see next section).
The recruitment program includes provisions for hiring of local community members. Targets for local workers are set at a minimum of 10% for skilled labor and 60% unskilled labor. ARG has a program to disclose job opportunities in the area of influence through meetings with community authorities, and leadership and bulletins posted in social media. The concessionaire is also carrying out employability campaigns together with local authorities and the National Training Service in the area of influence of the project.
Worker’s Grievance Mechanism
The internal labor regulations outline the process to present workers grievances directly to the supervisor or seek the advice of the labor union if it is in place. Grievances related with labor or GBVH are also outlined in the internal labor regulations which require reporting to the labor relations committee. As part of ESAP item #5, ARG will review and revise its “Workers’ Grievance Mechanism” to include a variety of channels to submit grievances, a detailed clear and transparent process to register and resolve grievances in a prompt manner, providing timely feedback to those concerned, and without retribution. The mechanism will allow for anonymous complaints to be raised and addressed and will be widely disclosed among direct and contractor workers. The grievance mechanism will have a specific process to addressed and resolve cases of GBVH with a survivor-centered approach. ARG will disclose the grievance mechanism among direct and contractor workers and ensure their awareness and understanding of the available tools and processes and how to properly access them and issue a complaint.
Occupational Health and Safety
ARG’s IMS includes the identification and analysis of risks and procedures for activities performed by employees and contractors which are detailed in risk and impacts identification matrices (“IPER” as per its Spanish acronym). The IMS includes nine OHS management programs (covering induction and training, OHS inspections and maintenance, emergency response, road safety, occupational health risk management) and related procedures addressing hazardous substances, incident investigation, risk identification, and PPE.
To further enhance the OHS management of the project, and better align its activities to the IFC EHS Guidelines for Toll Roads, particularly with regards to ongoing road maintenance activities, the Company will develop, as part of ESAP item #6, two OHS management plans, as follows: (i) a “Moving Equipment and Traffic Safety Plan” developed after a thorough technical inspection of ongoing repair works aimed at identifying any unmitigated risks and improve the protection of workers to physical hazards from moving equipment and traffic hazards; and (ii) a “OHS Management Plan for Road Maintenance” for ongoing road maintenance works to enhance the processes of: i) safety risks identification and communication, ii) competency assessment and certification of equipment operators, iii) safety inspections of equipment, iv) emergency response protocols and communication, v) field-based OHS monitoring.
PS 3 – Resource Efficiency and Pollution Prevention
Resource Efficiency, Greenhouse Gases (GHG) and Climate Change
Energy currently used by the Concessionaire is taken from the national grid, however, during construction, it is likely that power will be sourced from mobile small diesel-powered generators. Water for construction will be sourced from different rivers and creeks. Each ‘Functional Unit’ has a water extraction point with the corresponding permitted water volumes from Colombian environmental and water authorities. No potential water competition issues with communities or other users are expected. To supplement the existing ESIAs with regards to resource efficiency, GHG and Climate Change and properly cover PS3 requirements, ARG will, as part of ESAP item #7: (i) develop a “Resource Efficiency Strategy” tailored to the construction and O&M phases of the concession to gradually implement measures for improving efficiency in its consumption of energy, water, and construction material inputs; (ii) estimate “GHG emissions” (Scope 1 & 2) for construction and operations; and (iii) perform a “Climate Change-related Assessment” to evaluate risks and opportunities, identify relevant adaptation measures to reduce such risks, and define potential mitigation measures.
Pollution Prevention and Control
Pollution prevention is part of the Company’s environmental management system. ARG has developed and implemented different management and monitoring plans to ensure their activities minimize adverse impacts on human health and the environment, including for areas under the direct control of the Company, and areas managed by contractors and subcontractors.
With regards to environmental noise generated by traffic, the project design strongly prioritized avoidance by introducing alignment bypass roads to avoid urban areas and sensitive receptors, with no recorded noise-related issues or complaints. The defined width of the right-of-way (minimum 60m) foster a significant reduction of traffic noise levels. The new baseline studies being conducted by the Company will inform if noise affects receptors, and although very unlikely, if additional mitigation actions are needed.
Because the Company is inheriting a project that was partially built and abandoned by a former concessionaire, ARG will conduct as part of ESAP item #8 a “Technical Survey to document any past environmental pollution” or potential legacy issues caused by past construction and maintenance activities that are not related to ARG. This registry will document any potential environmental liability and will serve as a reference for any future discussion with ANI regarding the environmental management of these, outside the scope of the project and ARG’s responsibility. In order to enhance pollution prevention controls during road repair and maintenance activities, ARG will develop and implement as part of ESAP item #9 an “Environmental Management Plan for Road Paving, Resurfacing and Painting” describing the mitigations and controls to be implemented for these activities with due consideration to the provisions set forth in Colombian regulations, environmental instruments (ESIA, PAGA, etc.) and IFC EHS Guidelines for Toll Roads.
Waste & Hazardous Materials Management
Solid waste generated by the project activities is segregated at source, classified (in hazardous, non-hazardous, recyclable and non-recyclable waste streams), temporarily stored in dedicated storage facilities, and disposed of following local regulations and procedures. Non-hazardous waste is evacuated on a weekly basis by licensed contractors. The management of hazardous waste (e.g., used lubricants, wipes impregnated with hydrocarbons, paint, solvents) is described in environmental management procedures followed by contractors. In general, hazardous waste is labeled and stored in restricted areas as established in local regulations and regularly evacuated. Data on the quantity, type and final disposal of waste is registered and shared with local authorities, as per Colombian legislation. Offices and toll centers have systems to collect effluents and liquid discharges, properly treat and dispose them as per the approved ESIAs and corresponding licenses. Effluents collected from portable toilets in construction and road maintenance fronts are regularly collected and disposed of in permitted facilities as well.
Management of hazardous materials is performed in accordance with the Company’s hazardous materials procedures, which outline provisions for the safe transportation, handling, labeling, and storage of hazardous materials including emergency response. In addition, the Company has specific procedures for the containment and collection of spills of hazardous substances.
Pesticide Use
The RoW maintenance is predominantly manual (i.e., physical clearing, trimming and cutting of vegetation with no pesticides or herbicides), which are activities usually performed by contractors, who follow general precautions and controls as established in the Company’s EHS procedures. The Company will develop as part of ESAP item #10 an “Integrated Vegetation Management Plan” aligned with IFC EHS Guidelines for Toll Roads to ensure that vegetation maintenance follows the mitigation hierarchy, avoids removing unnecessary amounts of vegetation, promote the planting of native species, the use of mechanical control measures instead of herbicides (as feasible), and the removal of invasive plant species.
PS 4 – Community Health, Safety and Security
The project is currently in the pre-construction phase, and the concessionaire is preparing documents and strategies for the construction, operations, and maintenance phases. The project design considers road safety measures according to Colombian legislation. Pedestrian bridges, underpasses, accesses and interconnections will be built considering community and users’ safety. The concessionaire has in place a Road Safety Policy and is drafting an agreement with the National Highway Police to help ensure community safety and security during the construction and operations phase. As part of community safety measures, the concessionaire will participate in the national annual safety drills organized by the government. Based on a community risk registry, ARG will develop, as part of ESAP item #11: “Community Health, and Safety Plan”, consolidating all actions to manage risks and impacts related to road traffic safety, transportation of materials and equipment, and management of waste and hazardous materials as pertaining to community health and safety, and the plan will include measures to minimize the risk of social conflict and GBVH and prevent the spread of communicable diseases due to potential project induced in-migration of workers and people in search of jobs and opportunities related to the construction of the project.
Security Personnel
ARG uses a government-sanctioned security contractor to provide protective services for its facilities. In total, 18 guards are stationed at its road operation centers along the road. The private security guards are unarmed. The concessionaire will update its Security Policy and develop a “Security Management Plan” as part of ESAP item #12 to include its commitment to protect their assets, personnel and operations while fully respecting human rights of internal and external stakeholders. The plan will include formal procedures for reporting, responding to and documenting security incidents, training requirements including GBVH prevention and management, and reviewing of security record of security contractors, consistent with IFC PS4. The aforementioned agreement with the National Highway Police will consider the principles stated in ARG’s Security Policy. ARG will communicate the security management plan to relevant stakeholders.
PS 5 – Land Acquisition and Involuntary Resettlement
As the initial “Ruta del Sol 2” project awarded and managed by another consortium was interrupted in 2017, the status of the land acquisition process and resettlement has different degrees of progress throughout the RoW. The project identified 557 properties affected by the RoW of which 246 have already been acquired following Colombian legislation and are registered to the ANI. Of the 311 remaining properties, 39 have been partially compensated and 5 are under expropriation process initiated by the previous concessionaire. Land titles of these 44 properties will only be transferred to the ANI once the compensation has been paid in full as per Colombian legislation. The acquisition of 267 properties is yet to commence. ARG has preliminary land acquisition agreements with over 50% of the landowners and expects to surpass the minimum required by law for all functional units prior to the start of construction. The concessionaire will acquire the land required for the project, on behalf of the State adhering to the statutory requirements. The totality of the right-of-way (RoW) will be registered to the ANI.
The areas to be acquired comprise mostly small portions of mid to large scale agricultural operations. A total of 238 social units (circa 800 people) are expected to be displaced, including 81 small businesses and commercial stall owners. The concessionaire is conducting an alternative analysis assessing the possibility of modifying the road alignment to avoid the displacement of 75 households by the Curumani bypass road. The analysis considers all the costs and impacts associated with the resettlement and those of realignment of the RoW. The information will be provided by the concessionaire to ANI, who will determine if the road is rerouted or will remain as originally designed. Avoidance through realignment is the preferred mitigation approach. However, if avoidance is not possible the displacement will be done in line with PS 5 requirements (refer sections below for details).
To ensure that there are no risks or liabilities to the project related to the land previously acquired, the concessionaire will conduct as part of ESAP item #13, an assessment to understand if the land acquisition process was aligned to statutory requirements and to identify if there were any gross violations of PS 5 objectives. The assessment will also inform of any residual risks and vulnerabilities resulting from previously acquired lands in which case, ARG will develop and implement a social assistance program to support Project Affected Persons (PAPs) with focus on vulnerable persons (project affected). If there are persons who continue to occupy the acquired lands and who have been compensated, the concessionaire with work with ANI to ensure relocation of these people in line with statutory requirements, providing moving support to these persons.
Where land acquisition was initiated by the previous concessionaire but was not completed (and is ongoing), as per ESAP item #14, ARG will perform an “Identification and Characterization of Affected Households” assessing potential impacts of any delays in the compensation payments. If there are issues identified in the land acquisition process with regards to compliance with local laws, ARG will facilitate and ensure delivery of entitlements to meet statutory requirements. In addition, if adverse impacts or vulnerabilities are identified in the characterization study which inhibit the affected person’s ability to restore his/her livelihood and standard of living (including adequate housing with security of tenure), ARG will extend support to PAPs by implementing adequate measures defined in a “Resettlement Action Plan” as defined in ESAP item #15 (see below). The concessionaire will actively monitor any ongoing expropriation processes and implementation of Resettlement Action Plans for this group of affected persons.
ARG has in place a comprehensive land acquisition strategy managed by the land acquisition unit with the support of the social and community relations function, following the Colombian legal requirements for compensation and socio-economic monitoring and support.
In order to ensure the objectives of PS5 are achieved, the concessionaire will prepare as per ESAP item #15 a “Land Acquisition, Compensation and Resettlement Framework” (‘LACRF’) outlining principles and measures to be implemented, with specific provisions to address ongoing and future resettlement of affected people with legal or recognizable rights to the land and assets they occupy, as well as people with no rights to the land or fixed assets, including people under the national program aimed at protecting the rights of those forcibly displaced by the armed conflict. The LACRF will establish the guidelines and procedures to develop one or several “Resettlement Action Plans” (RAPs) and/or “Livelihood Restoration Plans” (LRPs) as applicable. The RAPs/LRPs will be developed and implemented prior to the start of the construction of each Functional Unit and before any impact of the land acquisition and resettlement process materializes.
The project will put in place, as part of ESAP item #16, a monitoring program for land acquisition & resettlement. The monitoring regime will include: a) independent quarterly monitoring of RAPs/LRPs’ implementation based on an agreed terms of reference following PS5 requirements and Colombian legislation; and b) an independent completion audit to assess the success of the resettlement program in restoration/enhancement of livelihoods of affected PAPs.
As per ESAP item #20 (see below), the concessionaire will make available to all PAPs a grievance redress mechanism with specific provisions for past, ongoing, and future land acquisition and resettlement concerns.
PS 6 – Biodiversity
The project comprises the extension of an existing road located in the Sinú Valley dry forests, the Magdalena Valley montane forests and the Magdalena-Urabá moist forests Ecoregions (WWF). The landscape is dominated by converted habitats and small remnants of forest are scattered and mainly associated with rivers (gallery forest). These fragile ecosystems are under pressure due to the expansion of settlements, cattle ranching, alien invasive species and extractive activities.
A portion of TM2 runs at about one km from the Legally Protected Area “Distrito Regional de Manejo Integrado Serranía de los Yariguíes” (IUCN Cat VI). There is no overlap of the project with any Key Biodiversity Area. The project baseline describe the dominance of Modified Habitat and small patches of Natural Habitat: gallery forest and secondary moist and dry forests. Priority biodiversity values associated with Natural Habitat are flora species Aegiphila sylvatica, Annona punicifolia, and Sapranthus isae and over 200 fauna species that are typical of these Ecoregions. The Company is updating the biodiversity baseline through a collaboration with a well-known and reputable foundation and, as per ESAP item #17, will complement the “Characterization of the patches on Natural Habitat” in line with PS6 requirements and include targeted surveys in priority flora species to better understand potential project impacts.
The project will convert approximately 12 ha of Natural Habitat due to the twinning of the road. Construction material will be sourced from 82 quarries, borrow pits and material deposits located very close to the project footprint. Footprint minimization measures implemented by ARG include avoidance of Natural Habitat when siting new greenfield junctions and temporary construction sites. The client will avoid the use of alien invasive species when revegetating areas for erosion control or landscaping (ESAP#10). The client will improve the existing road by implementing fauna passages, based on the outcomes of the biodiversity baseline studies being conducted, to improve connectivity and address fauna road kills.
According to the ESIAs and environmental licenses, the project needs to develop and implement a compensation strategy in line with Colombian law. As per ESAP item #18 ARG will develop and implement a “Biodiversity Action Plan” (‘BAP’). The BAP will include a biodiversity assessment to determine the significance of residual impacts, including those from the right-of-way and the quarries, borrow pits and material deposits, and if “No Net Loss” requirements are met through the national compensation. The BAP will include a description of the priority biodiversity values of the Natural Habitat remnants, a loss and gain calculation (considering the legal compensation already required by law), a strategy to meet ‘No Net Loss’ requirements and a plan to evaluate and monitor the implementation of such strategy, including the effectiveness of fauna passages.
PS 8 – Cultural Heritage
The project is unlikely to directly impact any recognized cultural, historical, or archaeological sites. The former concessionaire executed twelve preventive archaeology programs as per Colombian legislation, which is aligned with PS8. The project will continue to manage potential risks of uncovering and disturbing unknown cultural heritage by implementing a Preventive Archaeology Program as per the Colombian Institute of Anthropology and History (ICANH) requirements. The concessionaire has assigned the necessary resources to implement the cultural heritage monitoring phase and will, as necessary, support ICANH on the implementation of any subsequent phases to comply with Colombian legislation.
