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.
PS1: Assessment and Management of Environmental and Social Risks and Impacts
Environmental and Social Management System
Buquebus manages its E&S risks and impacts in line with local and national regulatory requirements. The Company has corporate policies and procedures certified to ISO 9001 (Quality Management System) and is working towards obtaining ISO 14001 (Environmental Management System) certification. Key policies and procedures include an Environmental Policy, Safety Policy, Maintenance and Repair Policy, Alcohol and Drug Policy, Gender Policy, among others. Buquebus identifies key environmental risks and impacts for vessels and terminals by means of a risk evaluation matrix. In addition, the Company manages risks and impacts in accordance with local and national regulatory requirements, including compliance with International Maritime Organization (IMO) requirements on each vessel. As per ESAP item #1, Buquebus will develop an E&S Operating Procedure (ESOP) for the e-ferry, commensurate to the scale and impacts of its activities, and consistent with the IFC PS and relevant World Bank Group (WBG) Environmental, Health, and Safety (EHS) Guidelines.
For the construction of the transmission line in Colonia, which is considered an AF, the construction contractor will require prior authorization from local government, which will consider the potential inconvenience and hazards that the works may present to the public. As the construction of the line in Colonia will be under the direct control of Buquebus, the construction contract has been prepared to require alignment with the IFC PS and relevant WBG EHS Guidelines. Buquebus will hire a consultant to supervise the construction contractor and verify compliance with the E&S contractual terms. For the construction of the transmission line in Buenos Aires, which is also considered an AF and will be carried out by the local electricity company, Buquebus will seek to influence the planned works to the extent feasible so that they are carried out in a manner consistent with applicable Performance Standards. The above efforts related to the AFs will be addressed within the Project’s ESOP, as per ESAP item #1.
Organizational Capacity and Competency
Buquebus’ Administration and Finance Director is responsible for E&S matters, whose team includes a Sustainability Manager. Labor is managed by the Human Resources (HR) Manager for each country, and a Safety Manager is responsible for overseeing OHS matters on the ferries. The team is supported by a specialist consultancy that is assisting with the ISO 14001 certification process, as well as a maritime safety consultant. E&S management of the e-ferry will be the responsibility of the captain, in line with IMO requirements. Going forward, as per ESAP item #2, Buquebus will designate an E&S professional as responsible for the development and maintenance of the ESOP.
Emergency Response Planning
The e-ferry will comply with the IMO’s emergency response requirements as defined by the International Convention for the Safety of Life at Sea (SOLAS), and the International Convention for the Prevention of Pollution from Ships (MARPOL). This includes weekly fire and abandon drills.
Monitoring and Review
The e-ferry will sail under the Uruguayan flag, and Uruguay has authorized a classification society, DNV, to act on their behalf to carry out statutory vessel survey and certification work. DNV conducts annual surveys of each Company vessel to verify that they are being maintained to the required standard and are compliant with the relevant IMO requirements. Furthermore, “special surveys” are conducted by DNV every five years. For the e-ferry, DNV was responsible for reviewing the submitted design to determine its compliance, and during construction, DNV surveyors have attended the vessel to verify it is being built in conformance with the drawings and IMO requirements. In addition to DNV, Buquebus vessel crew will conduct E&S monitoring, supported by onshore Buquebus staff.
Buquebus has begun to report its sustainability initiatives via publications on its website (https://www.buquebus.com/static/landings/brochure/pdf/Buquebus%20Construyendo%20Futuro%202023.pdf), and going forward, the Company plans to publish an annual sustainability report. As part of ESAP item #1 Buquebus will develop procedures to monitor compliance for the e-ferry and AFs, establishing and monitoring key performance indicators (KPIs) and performance targets for all aspects of E&S as defined by IFC PS.
PS2: Labor and Working Conditions
Human Resources
At the time of writing, the Company has 918 employees, 37% of which are women. In addition to staff, Buquebus relies on third-party contractors for specialized maintenance tasks, terminal security, and cleaning, among other services. The e-ferry will have a crew of approximately 40 workers per shift.
Buquebus’ HR Induction Manual (which includes a Gender Policy and the Sexual Conduct Policy), as well as the model employment contract, are aligned with local regulations. New hires partake in an induction meeting and are required to sign that they have read and agreed to all of Buquebus’ policies.
The Company has established collective bargaining agreements with the two unions to which its vessel workers are subscribed. These agreements are designed to meet and exceed the minimum requirements established in local labor law.
Supply Chain
Buquebus has a Supply Chain Evaluation Procedure. The battery supplier for the e-ferry has supply chain management procedures in place and follows the reporting templates established by the Responsible Minerals Initiative. As per ESAP item #3 Buquebus will develop a Supplier Code of Conduct, applicable to the e-ferry, which will explicitly prohibit the use of forced labor and child labor in the supply chain.
Gender-based Violence and Harassment (GBVH)
The Company’s Gender Policy seeks to (a) eliminate discrimination based on gender, (b) promote equal opportunities, (c) eliminate GBVH, and (d) generate opportunities and training to further gender equality.
Occupational Health and Safety
As per IMO requirements, each Buquebus vessel complies with SOLAS and the International Safety Management Code, (the latter requiring the implementation of a safety management system onboard). The Company’s Safety Policy commits to the development of safe practices, risk identification and compliance with company and regulatory OHS requirements. As part of ESAP item #1, the project-specific ESOP will include OHS management for the e-ferry and AFs, with OHS practices that comply with the IFC PS and relevant WBG EHS Guidelines.
Worker Grievance Mechanism
Buquebus conduct’s periodic surveys of employee satisfaction. As part ESAP item #4 Buquebus will establish a project-specific workers’ grievance mechanism (WGM), including third-party workers, providing a confidential channel to raise grievances about any misconduct or about any other issue in the workplace, including GBVH.
Workers Engaged by Third Parties
Buquebus has in place a Contractors’ Evaluation Procedure which is applied to the vetting of third-party workers. As part of the ESOP under ESAP item #1, Buquebus will ensure that IFC PS2 requirements are applied to project-related contractors and subcontractors. The Company will also make the WGM available to these third-party workers.
PS3: Resource Efficiency and Pollution Prevention
Pollution Prevention
As per IMO requirements, the e-ferry will comply with MARPOL requirements. It will be a zero-discharge operation, with sewage and food waste offloaded at the terminal. Air emissions will be limited to periodic testing of the diesel emergency generator. The e-ferry is expected to generate significantly less noise than a conventional ferry due to absence of engines. The anti-fouling paints applied to the hull will be free from tributyltin or copper oxides.
Resource Efficiency
The e-ferry will be equipped with a sophisticated navigation system which will save power by adjusting course in response to river currents, wind, and wave conditions. The e-ferry will also incorporate energy efficient lighting, heating, ventilation, and air conditioning systems. All water will be supplied from municipal sources, loaded onto the vessels at the ferry terminals.
Greenhouse Gases (GHG) Emissions
By displacing diesel-based ferries, the e-ferry, which will be fully charged from the grid, is expected to avoid a total of 37,545 tonnes of carbon dioxide equivalent emissions annually.
Waste Management
As per MARPOL, the e-ferry will have a Garbage Management Plan and record book. Waste will be segregated into several different streams, with dedicated storage areas for hazardous and non-hazardous waste. All hazardous waste will be collected and disposed of by an authorized third party in Buenos Aires. Non-hazardous waste will be disposed of in both Colonia and Buenos Aires. Food waste will be composted, and initiatives are ongoing to increase recycling of waste plastics.
The e-ferry batteries will have a life of 10 years, after which they will be collected and replaced under a guarantee by the manufacturer. Any defective batteries will also be returned to the manufacturer. As a result of the e-ferry, one of the older ferries in the fleet is likely to be sold for scrap. As per ESAP item #5, Buquebus will prepare a “Green Passport” to highlight to the new owner the inventory of any potentially hazardous materials, in accordance with the WBG EHS Guidelines for Shipping.
Hazardous Materials
The e-ferry will transport cars that have their own fuel tanks, plus the vessel will have a diesel tank for the emergency generator, as well as lubricants and other chemicals for light maintenance activities. As per the Shipboard Oil Pollution Emergency Plan required under MARPOL, the e-ferry will have a brigade dedicated to spill response and spill response kits will be onboard. Safe storage onboard is as per IMO requirements.
PS4: Community Health, Safety and Security
Life & Fire Safety
Buquebus has 40 years of experience as a passenger ferry operator without any significant accidents. The e-ferry life and fire safety (L&FS) procedures will be as per SOLAS and Class requirements, verified annually by the classification society (DNV). The e-ferry will be equipped with smoke detectors, fire alarms, fire pumps and a sprinkler system. Each battery system will be compartmentalized within dedicated rooms, equipped with an automatic system to prevent overheating. In the event of a fire, an inert gas extinguishing system will be used to purge the oxygen from the room. Each battery room will be fire resistant for at least 70 minutes.
In line with the ISM code, maintenance of critical equipment related to L&FS will be tracked using a specific software package. As per SOLAS, different alarms will be tested in each weekly drill so that over the course of every three months, all are tested.
The vessel will be strictly non-smoking and when underway, passengers will not be permitted to access their vehicles unless accompanied by a member of crew. The parking deck will be permanently manned to monitor for vehicle fuel leaks or fires, with extinguishers and spill kits readily available.
As part of the initial certification of the e-ferry by the classification society, it will be required to carry out a full abandon ship simulation. The vessel will be equipped with a marine evacuation system of inflatable slides and life rafts to facilitate rapid abandonment. Emergency evacuation plans will be posted on the back of passenger seats and a safety video will be shown before the start of each voyage. The vessel will have dedicated spaces for wheelchairs and the crew will be trained in how to evacuate passengers with disabilities.
Navigational Safety
The e-ferry will be equipped with eight electric motors, but only one motor will be required in order to navigate safely. There will be two battery systems onboard, each in their own room. Should one fail, the other can supply the ship with power. Should both fail, the vessel has a backup diesel generator.
If bad weather is forecast, the port captain and/or the vessel captain take the decision on whether or not to sail. In rough conditions, passengers are required to remain in their seats, and the onboard restaurants and shops are closed. All crew are trained to observe and encourage the passengers to comply.
The ferries follow specific “lanes”, marked on publicly available charts. Other seafarers are required to keep clear of those lanes, but if a vessel is present, the ferry captain will deviate around it. Most seafarers are equipped with Automatic Identification System (AIS) tracking beacons, but the e-ferry will be equipped with sophisticated radar that can reliably detect other vessels in darkness or in fog, (including smaller vessels like artisanal fishers and recreational craft that do not have AIS).
Passenger Welfare
Passengers are restricted from accessing hazardous areas of the vessel. The captain and officers are trained in advanced first aid, including use of onboard defibrillators, if required. Buquebus has a specific procedure for unaccompanied minors, which requires them to be escorted onto and off the boat by Buquebus staff. Unaccompanied minors must have a Uruguayan or Argentinian passport to travel, or if another nationality, a permit to travel signed by each parent.
Security Management
As per IMO requirements, the e-ferry and the relevant terminal facilities will comply with the International Ship and Port Facility Security Code (ISPS). The captain and crew of each vessel are responsible for security on board. Buquebus also contracts unarmed security guards to control access to restricted areas within the ferry terminal concession. Armed personnel from the Argentine Naval Prefecture are also present at the terminal. Security in Colonia terminal is the responsibility of the port authority.
As per ESAP item #6, Buquebus will develop a Security Policy aligned with PS4 for the e-ferry requiring that security personnel are guided by the principles of proportionality and good international practice and communicate its principles of conduct to public security forces.
PS8: Cultural Heritage
The buried transmission line in Colonia will pass in close proximity to, but will not enter, the Historic Quarter of the City of Colonia del Sacramento UNESCO Cultural World Heritage Site (https://whc.unesco.org/en/list/747/). Local permitting will require the avoidance of cultural heritage impacts and reporting chance finds. As per ESAP item #7, Buquebus’ construction contractor will develop a Chance Finds Procedure in line with local requirements and IFC PS8 for the transmission line, which will be applied if cultural heritage is discovered.
