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 Impacts
Policy, Management Systems and Programs: WCL has an E&S policy and Occupational Health & Safety (OHS) policy in line with IFC PS requirement and a commitment to comply with all applicable national, regional, and local health and safety regulations, and good international industry practices (GIIP). This policy is applicable to all branches, offices, warehouses, data centers and other WCL establishments across Nepal.
The company has received ISO 9001:2015 certification covering following scope of activities: internet services, data networking, system and network integration, and web hosting and development. With quality system in place, the company is currently working on developing a detailed ESMS covering the FTTH operations. WCL is currently in the process of ESMS preparation with support from a third-party consultant. Most of the plans and SOPs are currently under review before they are rolled out as a part of the ESMS implementation. However, the company has already started rolling out parts of the ESMS especially related to OHS training, incident reporting, etc. As part of ESAP# 1, the company will update the draft FTTH ESMS in line with IFC PS requirements, World Bank Group (WBG) General Environmental, Health, and Safety (EHS) Guidelines, and EHS Guidelines for Telecommunications, 2007. The ESMS will include the various operations including corporate, regional centers, branches, POP station, warehouse, logistics and transportation. ESMS update to include: a procedure to ensure that ESHS risks, including those associated with community health and safety, land acquisition risk (especially in remote areas lacking NEA poles), Indigenous People (IPs), cultural heritage and biodiversity are identified and managed in line with IFC PSs; a screening method to avoid construction in areas of high biodiversity value; contractor ESHS management procedure; stakeholder engagement including a grievance redressal framework; road safety procedure to manage risks during construction, operations, and maintenance (O&M); waste management procedure; emergency preparedness and response framework; reporting, monitoring and management review.
The draft ESMS for FTTH currently does not cover DC construction and operations. Some of the existing procedures could be updated to cover DC operations; however, for some specific components- the SOPs will need to be either detailed or separate SOPs will be required. As part of ESAP #2, for DWL operations, the company will develop an ESMS in line with applicable regulations, IFC PSs and relevant WBG EHS guidelines. The ESMS will cover construction stage as well as operations stage.
Identification of Risks and Impacts:
The draft ESMS has an E&S risk identification & assessment procedure for the FTTH operations which will be further updated. For the DC part of business, the company has started construction of the first core DC at Matatirtha (building structure), while the remaining DCs will be container based. For the under-construction DC at Matatirtha, the company has obtained planning permit from the local authority. The company will also obtain permits from other authorities, as required before operation of the DCs. The DCs currently do not require Environmental Social Impact Assessment (ESIA) as per local regulations. The company has completed a limited climate physical risk assessment for its upcoming DC in Matatirtha. Additionally, the client also conducted a study on air quality and future trend analysis related to climate change on air pollution and corrosion for Matatirtha DC. However, these assessments do not include a detailed E&S risk assessment for the construction and operations stage. As part of ESAP#3, WCL will undertake a focused ESIA for DC for the operations stage at Matatirtha and prepare operations phase site-specific ESMPs as well as HSE plan in line with the requirements of IFC’s PSs and WBG General EHS guidelines (2007). The ESMS for DC operations will factor in the ESMP for the operations stage. As part of ESAP#2, DWL’s corporate ESMS will have provision for undertaking focused E&S impact assessment for upcoming DCs and include generic ESMP for construction stage and operations stage.
Organizational capacity: WCL EHS department comes under the purview of the HR manager reporting to CEO. Currently, the EHS department has E&S lead reporting to the HR manager. In addition to the E&S lead, one safety coordinator and HR coordinator (supported by 14 staffs) are currently in place. The company has however developed proposed staffing plan which includes provision for 2 safety coordinator, environment coordinator, registered nurse, and HR coordinator. At the regional level (covering around 170 branches), the company has plan to hire safety lead / EHS coordinators. At the Branch level, the HR coordinator (with support from logistics/ administration) will be responsible for ESMS implementation (post adequate training). The company does not have dedicated staffing for the DC construction and operation phase. As per ESAP#4, WL will put in place adequate staffing for the FTTH operations at the corporate, regional and branch level as per the approved staffing plan to ensure ESMS implementation in line with IFC PS and relevant WBG EHS guideline requirements. Similarly for DC operations, the company will ensure adequate staffing for the construction phase, as well as for the operations stage (for all DC operations). For core DC, the company will have a dedicated EHS officer, while for edge DCs, dedicated technical staffs will be trained for ESMS implementation.
Training: The company has developed 4 regional training centers covering 5 regions, while an additional training center is planned to cover remaining 2 regions. The training team across 5 training centers has overall staffing of around 20 trainers: 6 sales team trainer, 10 technical trainer, 4 training coordinators. The training is primarily targeted for branch level employees from multiple departments such as sales/ support/ kitchen/ logistics/ network/ drivers. WCL provides levels of training usually in a batch of 15-25 employees: basic (6 days during induction), intermediate (5 days- after 6 months) and advanced (3 days training after 12 months) depending upon the time spent by the employee in the company. The training usually covers aspects such as: electrical infrastructure and risk; PPE usage; ladder safety; road safety; safe behaviour etc. The training module is developed in consultation with the EHS team and the HODs of various departments. Going forward, the company will conduct trainings related to ESMS implementation for EHS staff at various levels including relevant EHS related trainings for employees.
Monitoring and Reporting: The E&S performance monitoring and reporting at WCL are currently in the initial stages. As part of the ESMS development for FTTH and DC operations (refer ESAP # 1&2), the company will develop an EHS monitoring and reporting procedure which will specify minimum key performance indicators (KPIs)/parameters to be monitored, with monitoring frequencies and type and the definition of thresholds that signal the need for corrective actions. The EHS monitoring procedure will be aligned with the applicable legal requirements, IFC PS and applicable WBG EHS guidelines.
Emergency Preparedness and Response: WCL does not have adequate Emergency preparedness and response plan (EPRP) for the corporate, regional, branch offices, warehouse. A basic EPRP is developed for the DC construction at Matatirtha. As part of ESAP#1&2, the company will develop Emergency Preparedness and Response framework (EPRF) at WCL level. ERRF guide the development of facility specific EPRP commensurate with the risks at the facility, especially factoring in climate-related events (such as urban flooding, landslide, etc.) and earthquake, Among others the EPRP will include the following basic elements: administration (policy, purpose, distribution, definitions, etc); organization of emergency areas (command centers, medical stations, etc); roles and responsibilities; communication systems; emergency response procedures; emergency resources; training and updating; checklists (role and action list and equipment checklist). EPRP will specifically address safety concerns related to climate-related risks and include measures to manage and mitigate the impacts of extreme weather events, such as floods, landslides, heatwaves, heavy rainfall, and seismic activity. EPRP procedures will include evacuation plans, securing critical infrastructure, and ensuring that staff are trained to safely evacuate in case of extreme weather. Regular drills will be conducted to simulate emergency responses to climate-related events, including heatwaves, floods, and severe storms. These drills ensure that all workers are familiar with safety protocols and emergency evacuation procedures. As part of ESAP #5, the company will develop and implement EPRP for all existing operations of WCL and DWL. EPRP will be adequately displayed at all the sites, responsible personnel trained, and mock drills conducted at regular frequency. Similarly, for the upcoming DC operations- both core and edge DCs the company will develop EPRP commensurate with the risk for the operations stage including external community. Future DC constructions will also have specific EPRP for the construction stage.
PS 2: Labour and Working Conditions:
The total employee strength of WCL currently is around 5000 which includes around 600 direct employees while around 4000 are third party employees. Overall women account for 16% of the total workforce. For the DC business, the expected staff strength for operations is around 50. The company uses biometric attendance system for direct and third-party workers for WCL FTTH operations. For FTTH operations, each of the 7 regional offices are usually headed by a regional manager, and supported by regional technical team, commercial team, HR officer, and finance officer (supported by logistics officer). Branch level is headed by Branch Manager and supported by operations (sales/ technical/ after sales/ HR/ logistics/ finance) network supervisor, support supervisor, team. The staff strength at branch level varies from 40-60 depending upon the area coverage. POP do not require staff presence, and the branch office is responsible for virtual and time to time site inspection. Apart from 2-3 direct WCL staffs, remaining branch level employees are on Infotech rolls. Kitchen services are especially for the morning shift staffs, though paid food is available in the day time.
HR Policies: WCL has developed employee service Bylaws, 2019 (amended in 2021), which summarises company’s compliance to the labour laws of Nepal. The Bylaws include: employee classification; recruitment, appointment, probation, pre-employment health check; transfer, promotion, performance evaluation; working hours (separately for women), overtime, shift system, leave; discipline, conduct and punishment; remuneration and allowances of employees, insurance; medical treatment; provident fund, gratuity, bonus, compensation (death/ physical incapacitation), social security fund; resignation, termination, retirement/ compulsory retirement, voluntary retirement, specials provision for putting employee in reserve; organization level trade union rights. The Collective Bargaining Agreement (CBA) with the union- (for the non- managerial employees) informs the revisions in the benefits/ terms and conditions of the employees; and the formulation/ update of the necessary policies or procedure is tracked in the union meeting with the management. The company, further has employee code of conduct primarily detailing ethics, dress/ time and attendance, use of company assets, conflict of interest, working with customers and suppliers, intellectual property, official communication, etc. The company has also developed anti-bribery and corruption policy, whistleblower policy and procedures. In addition, as stipulated in Bylaws, the company develops procedures/ detailed guidelines for certain HR aspects (which need additional clarity for implementation). For instance, staff transfer policy, performance development action plan policy, among others in addition to Bylaws.
As part of ESAP # 6, WCL will consolidate the existing HR policies and procedures (in addition to service Bylaws)- which may include: HR policies detailing out the provisions under existing Bylaws; or, HR policy update as per agreement with recognized union. The company will also update and/ or develop specific HR policies and procedures in line with IFC PS2 requirements which among others will include: non- discrimination; Grievance Mechanism (GM) for employees and third-party workers; detailed procedure with respect to PoSH (especially factoring in survivor centric approach, non-tolerance to reprisal and retaliation, anonymity as desired, multiple channels for registering grievances including anonymous channels); retrenchment policy. WCL will implement these policies for ISP business and for DC operations. Further, as part of ESAP # 7, WCL will develop an employee handbook clearly articulating the terms and condition of employment and will disclose the updated employee handbook and conditions of employment to workers in both English and Nepali. It is expected that DWL operation will follow similar HR policies and procedures.
Terms and condition of employment: WCL direct employees as well as third party workers on the rolls of Infotech are provided appointment letters clearly articulating the terms and condition of employment including: working hours, remuneration, probation period, performance review etc. The company has OT policy as per which workers are paid at double the wages for normal days, 2.5 times the wages for working on public holidays and 3.5 times for working during festival leave, which goes beyond the legal requirements.
Worker Protection: WCL has draft policies on prohibition of child labour and forced labor in line with Labour Act 2017 and Child Labour (Prohibition and Regulation) Act, 2000. As per ESAP #6, these policies will be finalized and included in the updated HR manual and employee handbook.
Grievance Mechanism (GM): Worker consultations indicated different forums used for raising concerns and grievances which include directly reaching out to supervisor/ HR, suggestion boxes, regional town hall on quarterly basis. In addition, direct employees of the company reach out to the union. The company has developed draft guidelines for grievance mechanism which will be further updated as mentioned in ESAP#6. The updated GM will be made available to: direct employees of WCL ISP operations and DC operations; third party workers under Infotech; third party construction contractor engaged in DC construction.
Prevention of Sexual Harassment (PoSH): The company has a policy on prevention of sexual harassment, articulating commitment of the company and procedures to be put in place including committee for redressal of grievances, as per the provisions of Sexual Harassment at Workplace Prevention Act 2015. As mentioned in ESAP#6 the company will update the GBVH procedure to include provision for information dissemination/ awareness generation, formation of committee, procedure for investigation of grievances, training of the committee members to conduct enquiry, etc.
Freedom of Association: WCL has an active union for more than 10 years. Independent Trade Union, WCL is the elected and authorized trade union at the enterprise level in WCL, for the last 6 years. Around 350 employees (in non- managerial capacity) are members of the union. The union has a core committee of 15 member including the regional staff which usually meets monthly. The authorized union, (as required under law) also forms a Collective Bargaining Committee (CBC) for presenting demands to the WCL management. Elections are conducted every 2 years and collective bargaining agreement (CBA) is also signed every 2 years. The last agreement between Union and WCL management was signed in August 2023 and was implemented retrospectively from July 2023. The union representatives also form the Labour Relation Committee (LRC). Legally, the Union represents only the worldlink direct employees; however, consultations indicated that they also discuss the terms of employment for the third-party workers. The third-party workers maintained that there should be better engagement with the Union.
Review of the LRC/union meeting minutes and consultation with the union representatives indicated discussion on issues such as: implementation of provisions agreed under CBA such as formation of welfare fund and registration process; optional retirement plan as per CBA; travel allowance and daily allowance distribution; process to form a committee with experts to classify the employees on the basis of their service period, and other ongoing issues such as policy for requirement of fit to work certificate for new employees.
Third Party Workers: For ISP operations, the company hires third party workers for housekeeping, security, operations staff for regional and branch level FTTH operations; most of this manpower is hired through Infotech. Consultations with Infotech workers and the WCL management indicated that usually the Infotech employees are treated at par with WCL direct employees (differences exist in aspect such as bonus amount which is relatively higher for WCL direct employees). Given the sizeable third-party workforce involved in WCL core operations, as per ESAP # 8, the company will develop an employee handbook for the third-party workers currently employed through Infotech clearly articulating the terms and condition of employment in line with the local regulations and IFC PS 2 requirements. WCL GM and PoSH provisions will be extended to Infotech workers.
Construction contractor for DC is guided through the construction contract agreement. As part of ESAP#1 &2 WCL will develop a contractor management system including review of the existing contractor management practices to cover manpower service providers and service based contractors: (a) updating the existing screening process to include working conditions and OHS related risks, track record or standing of contractors; (b) contractual obligations on contractors or intermediaries; (b) regular supervision of their performance vis a vis the Company’s labour and working conditions, as applicable; (c) auditing the relationship and type of contract between third party and workers; (d) training for all third party workers to explain labor and working conditions for activities as applicable; (e) regular monitoring of the contractor’s legal compliance, and EHS requirements; and (f) ensuring corrective actions (in case of any identified gaps), are agreed with the vendors/suppliers/contractors and implemented in a time bound manner.
Labour accommodation: For the DC construction phase, the company does not provide any accommodation directly or through third party at the work site. The construction contractor, however, arrange accommodation for the workers in the nearby areas. WCL, therefore, as part of ESMS update (ESAP #1&2), will develop labour accommodation guidelines and standards consistent with IFC-EBRD guidelines on labour accommodation.
Occupational Health and Safety (OHS): All employees (including Infotech employees) are required to mandatorily complete training at the WCL training center. The training among others include aspects related to OHS. For the ISP operations, the company has recently started reporting of incidents. The training center in consultation with the departmental heads prepare the training module with special focus on OHS. The company as part of ESAP #1, will put in provisions for collection and reporting of OHS data including LTI. With rising temperatures expected, and increased probability of heatwaves, workers (especially in the sales operations) may face heightened risks of heat-stress, exhaustion, and heat-related illnesses, especially during extended heatwaves and working outdoors (construction). The company will put in specific OHS procedures associated with extreme heat or high temperatures; the procedure will include measures such as: alternative working schedules which may include starting work earlier in the day, reducing working hours, or introducing more frequent breaks to prevent heat exhaustion; structured work-rest cycle, allowing workers to take more frequent breaks in shaded or cool areas during the hottest parts of the day; ongoing training for workers on the risks associated with climate change, including the importance of recognizing climate-related health risks like heat stress, dehydration, and cold-related illnesses during extreme weather events.
The company currently does not have dedicated EHS team for DC construction or operations stage. WCL EHS team (due to site location in Kathmandu) ensures weekly monitoring of the construction site. For the DC construction site at Matatirtha, currently a basic HSE plan is implemented. The workers are provided safety induction followed by safety training on a weekly basis along with daily tool box talks. The work permit system was however not implemented properly. Though, incident reporting was undertaken, incident investigation could be further improved. There is no reported fatality and/or significant incident during the construction phase. As part of ESAP #2, WCL will ensure that ESMS for DC include HSE plan both for the construction and operations stage. WCL EHS team will ensure that HSE plan is implemented by the construction contractor. WCL EHS team will ensure regular monitoring and daily reporting on HSE performance by the contractor. In addition, the contractors will submit monthly progress reports including total manpower, manhour worked every month and till date, incidents and fatal accident, mandays lost, details of safety activities undertaken at site such as safety induction for new workers and refresher training for other workers, monthly safety meeting, including identified hazards and corrective action implemented at site. The contractor has developed plans for EHS, emergency response and preparedness. During the operations stage OHS procedures will be implemented, including establishment of Health Safety and safety (H&S) Committee to review, guide, monitor, improve and report the performance to company’s management.
PS 3: Resource Efficiency and Pollution Prevention:
Water and energy supply: Typical water requirement at branch offices and regional offices are sourced through municipal water supply. POP operations do not require any water supply. For DC construction at Matatirtha, the construction water is sourced through local tankers, while for the operations stage water (mostly for domestic consumption) will be sourced from municipal water supply/ tankers; tubewell within the premises will be used for operations storage (fire hydrant). Domestic water requirement for DC operations will be limited with only 5 staff positions proposed during operations. The electricity for ISP operations including branch, regional offices, and POP is sourced from the grid. For DC operations, the electricity will be sourced from grid and will have DG sets for power back up.
Resource Efficiency: The data centers are designed to be energy efficient with low GHG emissions and will be IFC Excellence in Design for Greater Efficiencies (EDGE) standards certified, which implies a demonstrated conservation of at least 20% in energy, water and materials of the building. The DC will use advanced cooling technologies (air-cooled systems) where possible to reduce reliance on water for cooling, significantly lowering overall water usage and minimize water consumption. Additionally, water-saving fixtures will be installed across the facility, including in restrooms and kitchen areas, to reduce water wastage without compromising operational needs. The DC is designed to include smart technologies for energy management, such as automated lighting, HVAC systems, and energy monitoring software, to optimize energy consumption and reduce waste, ensuring long-term operational efficiency. The company has ensured purchase of energy-efficient hardware and software solutions for DC to reduce energy consumption and extend the lifespan of equipment and reducing e-waste.
Air emissions and Greenhouse Gases (GHG): The Project is expected to mainly use grid electricity for its energy needs, with diesel generators as backup in emergency (estimate running one day per year). DC operations at Matatirtha will have 4 DG sets (2250 KVA each). The DC will use low-emission technologies for DG set and backup power systems to ensure that air quality is maintained even during peak energy demand. HVAC will be equipped with high-efficiency particulate air (HEPA) filters and UV purification systems, to help maintain indoor air quality and prevent the buildup of pollutants within the facility. Emissions are expected to be primarily from backup DGs. The DG set emissions (and treated effluent quality) will be monitored and managed in accordance with the legal requirements and monitoring framework discussed under PS1. Nepal’s electricity is generated primarily from hydro (approximately 99%). Due to high renewable energy penetration, Nepal’s grid emission factor is 0. Hence, the absolute GHG emissions are estimated to be 0.14 tCO2e/year. In addition, the DCs are expected to obtain internationally recognized green building certificate, it is expected to save 12,914 MWh/year electricity because of on-site energy efficiency measures.
Hazardous Material and Waste Management: For DC the construction waste will include used oil from back up DG set, lubricants, paints and solvents (to be used once mechanical, engineering and plumbing work is completed). The hazardous waste is segregated from other waste streams and disposed in line with regulatory provisions. For the operational phase, typical chemicals will include cleaning/maintenance chemicals, pest control, etc. which will be stored and used as per the material safety data sheet (MSDS) prepared for each of the chemicals. Used oil (from the back-up diesel generator maintenance) and batteries will be disposed of through authorized recyclers. WCL will develop waste management plan for proper segregation, storage, collection and disposal of waste for both ISP and DC operations, as part of ESMS for ISP and DC operations (refer ESAP#1&2).
PS 4: Community Health Safety and Security
The DC design at Matatirtha is primarily in line with the Nepal National Building Code NBC: 105:2020, “Seismic Design of Buildings in Nepal” and designed for seismic zone 5. The DC at Matatirtha is planned to achieve TIA 942 Rated III, certification which conforms the Concurrent Maintainable Data Center design to the requirements of the standard involving over 2,600 criteria encompassing architectural, electrical, mechanical, telecommunication, security and safety aspects.
Life & Fire Safety (L&FS): As part pf ESAP #8, For the Matatirtha/ Building DC project, a suitably qualified Life and fire safety (L&FS) professional will prepare a master plan identifying major fire risks, applicable codes, standards and regulations, and mitigation measures that certifies that the design meets the requirement of L&FS guidelines such as local building codes, local fire department regulations, and in accordance with an internationally accepted L&FS standard (e.g., United States National Fire Protection Association -NFPA or equivalent). Subsequently, as part of the commissioning, the L&FS professional will inspect the commissioning of the L&FS systems to confirm that the new facility has been constructed in accordance with the agreed design. The EPRP for the DC sites will include risks to the external community too.
Traffic: ISP operations require frequent movement of the branch team for FTTH services. Similarly warehouse operations require frequent movement of the vehicles including dry port at Birganj and Bhairwa. In total company has around 136 vehicles (including 126 four wheelers, and 10 medium/ large vehicles). Around one-fourth of the drivers are WCL direct employees, while remaining are on Infotech payroll. Fleet management software captures multiple details including: live locations of the vehicles through GPS, service and repair records, fuel consumed by the vehicle, tax, service, or insurance. Additionally, Infotech field/sales team is expected to use their own two- wheelers. The company as part of the ESMS for ISP operations (refer ESAP # 1), WCL will develop road safety procedure associated with movement of vehicles (four and two-wheelers), lifting equipment (such as cranes, forklift trucks) and working around the road traffic movement and train the personnel on those rules/ measures to ensure staff and community safety.
Security: The corporate office, regional office and branch offices, warehouse, training centers hire around 55 unarmed security personnel. For DC, the company has hired unarmed private security personnel for the construction stage. During the operation of the DC, unarmed private security guard will be hired through external agency. The company as part of the ESMS development (refer ESAP # 1&2), WCL will develop and put in place a security management plan guided by the principles of proportionality and good international practice and include procedures to: assess risks posed by security arrangements; ensure hiring, rules of conduct, training, equipping, and monitoring of security personnel; provide for background verification on security personnel's individual character with no incidents of past abuses; train security personnel to exhibit appropriate conduct towards plant workers and neighboring communities; train security personnel to manage mock sessions of labor unrest and protests; and to receive and resolve grievances about the security arrangements and acts of security personnel.
