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: SDIC has developed a corporate Environmental Policy that describes the Company’s commitment to minimize the impact of its operations on the environment, protect natural resources, and promote resource efficiency, energy savings, waste reduction and recycling. The corporate Environment Policy is communicated to all staff during employee induction, as well as during training and management briefings. A Fire Safety Policy to prevent fire incidents across all SDIC premises and construction developments is also in place, as well as a Quality Health Safety and Environment Policy (QHSE) to maintain compliance with regulatory requirements and uphold a zero-tolerance approach to workplace incidents. As per ESAP#1, SDIC will update the Environmental Policy to include social aspects and make it consistent with the requirements of IFC Performance Standards (PSs), including a commitment to comply with local regulatory requirements, identification and management of social risks and impacts, as well as a commitment to meaningful, ongoing stakeholder engagement, accessible information disclosure, and a grievance mechanism for communities and workers.
Identification of Risk and Impacts: In 2020, the government commissioned an Environmental Impact Assessment (EIA) for the Omani Riviera Master Plan, which included the TSCY development. The EIA addressed environmental, socio economic and cultural heritage aspects and documented the stakeholder engagement activities carried out as part of the EIA. The EIA also included a framework for the Environmental Management Plans for construction and operation of TSCY. As per ESAP#2 the Company will carry out an E&S assessment for the Desalination Plant to secure its operating permit and which will include (i) identification of priority biodiversity values, (ii) assessment of potential risks and impacts resulting from construction and operation of the Desalinization Plant, and (iii) mitigation measures commensurate with risks and impacts.
SDIC has developed a risk matrix for the construction phase which rates the severity, consequence, and likelihood of occurrence of accidents and incidents during various construction activities such as hot works, handling chemicals, excavation and back filling, use of ladders, scaffolding and working at height, etc. Similarly, the main construction contractor of Plaza District maintains an E&S risk register which identifies potential E&S risks, assigns responsibility, and proposes mitigation measures to ensure compliance with local regulatory requirements, and Good International Industry Practice (GIIP).
Environmental and Social Management Systems: SDIC has developed a Health, Safety and Environment (HSE) Management Plan to define a clear strategy for managing all HSE requirements across SDIC’s projects. The Plan provides guidance for successful implementation of the HSE policy and serves as a binding reference for all entities involved, including supervision of consultants, contractors, sub-contractors, and vendors. As per ESAP#3, the Company will establish a corporate ESMS commensurate with the E&S risks and impact of its operations, compliant with the national law, and consistent with the requirements of IFC’s Performance Standards, and World Bank Group (WBG) General Environment Health and Safety (EHS) Guidelines. The corporate ESMS will include (i) Company’s core E&S policies; (ii) applicable local and international standards that the Project will comply with, including the IFC Performance Standards and WBG EHS Guidelines; (iii) the list of ESMPs that are applicable to the Project phases; (iv) E&S roles and responsibilities; (v) training and communication; (vi) monitoring, reporting and management review of E&S performance; (vii) onsite and offsite emergency response procedures; and (viii) stakeholder engagement and a community grievance mechanism.
Management programs: The risks and impacts from construction of Plaza district are typical of large construction projects including dust and air pollution, noise, generation of solid and liquid waste, spills, soil and groundwater contamination, aquatic pollution, as well as occupational health and safety (OHS) risks. The main construction contractor for Plaza District, the construction contractor, has prepared various construction plans to manage and minimize these impacts including HSE procedures for Waste Management, Spillage Control, Noise Monitoring and Control, and Air Pollution Control. The construction contractor has also developed an HSE Operational Control and Monitoring Procedure, Procedure for Management of HSE in the Organization, and Incident Reporting, Investigation and Review procedure to identify and manage existing or potential deviations that may affect HSE performance. The Construction Contractor’s Emergency Preparedness and Control Procedure defines the framework to ensure timely and efficient response in case of emergencies, such as fire, electric shock, spillage, extreme weather conditions, and also defines the responsibilities of Emergency Response team and other staff members.
As per ESAP#4, prior to completion of all construction activities at Plaza District, the Company will develop relevant operational management plans consistent with national requirements, IFC PS, and WBG EHS Guidelines. These plans will address all relevant E&S risks including resource efficiency, waste management, wastewater management, emergency response, health and safety, security; traffic; environmental monitoring; worker management; Gender Based Violence and Harassment (GBVH), including child safeguards measures; as well as stakeholder engagement (including grievance management). An E&S Training Plan and E&S Monitoring Plan will also be included.
Organizational Capacity and Competency: SDIC currently has an HSE Manager who leads the HSE functions of the Company and provides quarterly reports on HSE performance to the senior management of the Company. For construction of the Plaza District, E&S oversight and monitoring is provided by the Project Management Company (PMC) hired by SDIC. The E&S organizational capacity of the construction contractor of Plaza District is commensurate with the risks of operations, and includes an HSE Manager, as well as HSE Supervisors (1 for every 50 workers) in line with local regulatory requirements. As per ESAP#5, SDIC will increase its E&S resource capacity by adding at least one HSE officer to the corporate team.
Emergency Preparedness and Response Plan (EPRP): The construction contractor has prepared an EPRP for the construction phase of Plaza District. This document establishes the framework for emergency preparedness and management, detailing procedures to ensure timely and effective response to emergencies to protect life, assets, and the environment, and to resume normal operations swiftly. It outlines responsibilities for project and line managers, the identification of potential emergency scenarios, the formation and training of emergency response teams, and the establishment of assembly points and escape routes. The procedure covers emergency communication systems, coordination with external support services, and the roles of personnel during emergencies. It also mandates regular emergency mock drills, documentation of drills and incidents, and continuous improvement through review and corrective actions, ensuring compliance with legal, contractual, and Company requirements for HSE protection. As part of the operational management plans (ESAP#4), the Company will prepare, implement, and maintain site-specific EPRPs for Plaza District to respond to accidental emergencies, particularly fire, flood, and earthquakes. This will include evacuation plans/routes, designated and marked assembly points, roles and responsibilities, communication procedures, protocols for conducting emergency response drills, as well as training frequency.
Monitoring and Review: Oversight and monitoring for construction of the Plaza District is provided by the PMC retained by SDIC. Contractors are expected to submit Quality, Health Safety, Security and the Environment (QHSSE) monthly and annual reports on overall compliance with SDIC’s HSE Plan, including, but not limited to the following: (i) Incident Notification; Accident Investigation Report; (ii) Site HSSE Inspection Reports (scaffolding, excavations, electrical safety, etc.); (iii) HSSE and Quality Audit Reports; (iv) Third party Inspection Reports of Construction Equipment; and (v) Contractor’s QHSSE performance. SDIC’s HSE manager compiles the HSE data and provides a quarterly report to the senior management of the Company. As part of the operations management plans (ESAP#4), the Company will prepare an E&S monitoring and review procedure for the operations phase of Plaza District in line with IFC Performance Standard 1, including monitoring indicators, frequency and responsibilities.
Climate Change: The Company has designed the coastal defense structures of TSCY taking into account increased frequencies of extreme storm events associated with climate change. Heat stress management procedures for the workers have been included in the standard operating procedures for the construction works: these include extended breaks (three hours) during the hottest times of the day, provision of shaded shelters in the workplace and unlimited availability of drinking water to prevent dehydration. Dehydration charts are also installed in all bathrooms available to site workers. All accommodation units in the workers’ camp are equipped with air conditioning units.
PS 2 – Labor and Working Conditions
The total number of direct workers at SDIC is 26, which consists of 17 men and 9 women. Of these 15 are Omani citizens while the rest are expatriates. The construction contractor has employed 2,039 workers for the construction phase of Plaza District, of which 848 are hired through sub-contractors. All construction workers are male and approximately 70% are migrant workers retained through term contracts (two years). The construction workforce is expected to increase to approximately 3,000 workers during 2026.
Human Resource Policy and Procedures: SDIC has developed a Human Capital Manual which includes guidance for workforce planning, talent acquisition, employee administration and management, compensation, benefits and leave, as well as learning and development. The manual serves as a comprehensive reference for SDIC’s human resource framework, and applies to all full-time, part-time, and short-term employees, as well as contractors, and expatriates. The Company has a Code of Business Conduct which serves as a guide to ethical decision making for all employees of the Company. The Code of Conduct includes a requirement to comply with all applicable regulations, and defines the Company policies for recruitment and employment, discrimination and harassment, health and safety, workplace discipline, claims, gifts, and conflict of interest, etc.
As per ESAP#6, SDIC will develop an HR Policy and update the Code of Conduct to comply with the requirements of IFC PS2 by including specific references to forced and child labor, freedom of association, non-discrimination, worker welfare, occupational health and safety, as well as explicitly addressing harassment, gender based violence and harassment (GBVH), and guaranteeing confidentiality, non-retaliation and a survivor-centered approach. The HR policy and Code of Conduct will apply to all direct, contracted and third-party workers. SDIC will include contractual clauses in contracts of contractors to comply with SDIC’s HR Policy and Code of Conduct, and contractors will do the same for sub-contractors.
Working Conditions, Term of Employment, and Worker’s Organizations: SDIC’s Human Capital Manual outlines the Company policies with regard to compensation, allowance, benefits, and leaves. All direct workers, including the EPC’s workers, receive a contract at time of employment in line with government requirements. This contract mentions basic terms of employment such as contract duration, annual leave, wages and benefits and working hours. Oman’s Basic Statute guarantees the freedom to form worker organizations within the ‘limits of the law’. However, neither SDIC direct workers nor contractor personnel are unionized.
Non-discrimination and Equal Opportunity: The Company’s Code of Conduct outlines that SDIC has a zero-tolerance policy towards discrimination or harassment, and emphasizes that intimidating, offensive, abusive and/or hostile work environment will not be tolerated. In addition, unwelcome sexual advances, requests for sexual favors, and/or other unwelcome verbal or physical conduct of a sexual nature are specifically prohibited. SDIC’s policies are cascaded to the construction contractors as part of the contract to execute the works.
Grievance Mechanism: SDIC’s Human Capital Manual describes the Company’s grievance mechanism, which is designed to help employees resolve problems or complaints related to work, working conditions, or relationships with other employees. According to this manual, all grievances are to be treated sensitively, impartially, and confidentially. Employees are encouraged to first raise grievances with their direct Line Manager or HR Department. If issues cannot be resolved informally, a formal grievance procedure is available, which is clearly communicated to all employees. A whistle blowing mechanism is also in place, open to all employees, contractors, suppliers, and other stakeholders. As per ESAP#7, the Company will improve the grievance mechanism and make it consistent with IFC PSs including the option to submit anonymous complaints, as well as a special procedure for reporting and investigating ‘sensitive cases’ – such as discrimination, child abuse, and GBVH (gender-based violence and harassment). The grievance mechanism will be accessible for all direct, contracted, and third-party workers of the Company. The Company will provide training to all workers on the Code of Conduct, HR policies, regulations and grievance mechanism during their initial induction and periodically thereafter, as well as, specialized training to managers, HR staff, and the inquiry committee on how to handle and investigate grievances.
Protecting the Work Force: SDIC does not hire workers below the age of 18 years in its direct workforce or contractors. The local laws prohibit forced labor, and do not permit the employer to keep the passport or personal documents of the worker, except with their written consent. As per ESAP#8, SDIC will prepare a Training Plan for the construction phase with an aim to provide information to the workers about their labor rights under the law, including passport retention by contractors and hiring agencies.
Workers’ Accommodation: The construction contractor for Plaza District has established a workers’ accommodation camp, approximately 5 km from the TSCY. There are currently 1800 workers residing at the camp and this number will rise to 3,000 workers by February 2026. Facilities to accommodate the additional workers are already available and currently unoccupied. The workers’ accommodation camp is well maintained and complies with local regulatory requirements and IFC’s guidance for workers’ accommodation.
Occupational Health & Safety (OHS): During project construction and operations, workers may be exposed to a range of physical hazards (e.g., working at height, noise, vibration, manual handling, operation of heavy equipment), chemical hazards (e.g., dust, fumes, solvents, fuels), and biological hazards (e.g., exposure to wastewater, vector-borne diseases, or contaminated materials). As previously outlined, SDIC has developed an HSE Management Plan to define a clear strategy for managing all HSE requirements across SDIC’s projects. Similarly, the construction contractor has prepared and is implementing a number of HSE procedures to identify and manage HSE risks. The Company records leading and lagging OHS indicators, including incidents, HSE violations, first aid-cases, lost time injuries, etc. The Company has an excellent health and safety record during construction, and Lost Time Injuries Frequency Rate is well below the OSHA (Occupational Safety and Health Administration from USA) industry benchmark for construction. As part of the operational management plans (ESAP#4), the Company will prepare an OHS management plan for operations in accordance with national law and WBG General EHS Guidelines (2007). This will include hazard identification, risk assessment, provision of appropriate personal protective equipment (PPE), permit to work, emergency preparedness, training, and monitoring.
Contractor Management: SDIC has developed a procedure which outlines the Company’s Quality, Health, Safety, Security and Environment (QHSSE) standards to be maintained by contractors. This document outlines (i) the requirements for prequalification of the contractors; (ii) mobilization on award of the contract; execution of the project; and (iii) de-mobilization. The main purpose is to ensure that contractor activities and performance comply with the Company’s HSE policy, procedures, and requirements. The Company will continue to implement this plan during the project operations phase. In addition, contractual clauses will be included in the contracts of contractors and in turn the sub-contractors, to comply with local regulatory requirements, SDIC’s corporate ESMS, operational management plans, as well as HR Policy and Code of Conduct.
Supply Chain: The Company has developed a Supply Chain Manual which outlines the activities and procedures required for procurement of goods and services. Solar photovoltaic panels will be procured and installed on the roof of the Plaza apartment buildings by the EPC contractor to partially meet the electricity requirements for the buildings.
PS 3 – Resource Efficiency and Pollution Prevention
Resource Efficiency: The Plaza District comprises 17 residential buildings and two office buildings. The residential buildings include 1,225 apartments. Plaza apartments will reduce energy consumption through demand-side management, including passive and active design. The design of the Plaza maximizes the use of shadows to reduce direct irradiation from sunlight and includes highly insulated ultraviolet (UV) reflective walls, roofs, and windows, which will reduce air-conditioning loads, electrical consumption, and operational loads. Using active design, the Plaza apartments will consume less energy than other comparable units in the country. Energy saving features include (i) centralized district cooling for the entire TSCY; (ii) light-emitting diodes (LED) lighting; and (iii) energy-efficient home appliances (fridge, microwave, dishwasher, and washing machine). To reduce water usage, all apartments in the Plaza District will be equipped with low-flow water fixtures and appliances to reduce total water consumption and footprint. As part of the operational management plans (ESAP#4), SDIC will prepare a Resource Efficiency Management Plan to reduce energy and water consumption and promote efficient use of resources
GHG emissions: The construction activities of the Plaza District will generate greenhouse gas (GHG) emissions as a result of fuel consumption by vehicles and by construction machinery (Scope 1), and through consumption of electrical power provided by the national grid of Oman (Scope 2). There may also be generation of small quantity of GHGs associated with loss of refrigerant gases from compressor of District Cooling Plant, but this is not expected to be significant. The yearly average GHG emissions associated with the construction phase of the Plaza District have been estimated as 4,121 tons of CO2 equivalent (tCO2e). The Company has also estimated the Scope 3 emissions associated with the building materials utilized for Plaza District amounting to 138,970 tCO2e.
The development strategy of TSCY includes the abatement of all GHG emissions generated during construction, as well as the mitigation of operational emissions following construction. Operational emissions will be addressed through the generation of renewable electricity from a solar photovoltaic (PV) system fully integrated into the design of the city and its assets.
The solar PV system will consist of rooftop-mounted solar modules and solar canopies installed over car parks, designed to maximize electricity generation within the constraints of available rooftop and parking areas within the city. The system will not include battery energy storage. Excess electricity generated during daytime hours will be exported to the national grid, and during nighttime hours electricity will be imported from the grid.
The Company estimates that upon completion of construction approximately 61% of the total annual electricity demand of the city will be met through on-site solar PV generation. The Plaza District is expected to have a total annual electricity demand of 4,602,600 kWh. Of this demand, 39% (approximately 1,795,000 kWh/year) will be supplied by the national grid, resulting in absolute GHG emissions of approximately 574 tCO2e per year, based on the applicable grid emission factor for Oman. The remaining 61% of demand (approximately 2,807,600 kWh/year) will be met by on-site solar PV generation, resulting in avoided emissions of approximately 897 tCO2e per year.
Air emissions and ambient air quality: Construction related dust and air pollution is managed by implementation of construction plans developed by the construction contractor of Plaza District. There will be no significant sources of air emissions once the construction works are completed.
Noise emissions: Construction noise is currently managed by implementation of a Noise Monitoring Control Plan developed by the construction contractor of Plaza District. There will be no significant noise emissions once the construction works are completed.
Water usage: During construction, water is supplied through water tankers. Once the Plaza District becomes operational, water will be supplied by the local government authority until a water desalination plant is constructed and commissioned with the purpose of providing potable water to the whole TSCY. Studies are underway to determine the feasibility of having such onsite desalination plant and to determine the technical requirements for the plant. As outlined below (PS6), the Company will carry out an environmental assessment to evaluate the impact of disposal of concentrated brine from the desalination plant to surface water courses.
Wastewater Management: TSCY aims to treat 100% of its wastewater generated from the various developments in the city. A Sewage Treatment Plant (STP) will be installed with a capacity to treat 2,000 m3/day of sewage using Moving Bed Bioreactors (MBBR) technology. Most of the treated sewage effluent (TSE) will be filtered and used in irrigation of green areas in the city, using a “smart” irrigation system to maximize efficiencies and reduce water losses. The rest of the TSE will be used in the District Cooling Plant (DCP). The DCP will consist of centralized cooling unit to provide cool air to the residents of TSCY with lower energy consumption and better efficiency compared to stand-alone cooling solutions. As part of the E&S plans for the operational phase (ESAP#4), SDIC will monitor the treated sewage effluent quality to ensure it complies with WBG EHS General Guidelines for treated sanitary wastewater.
Waste Management: Waste generated during construction of Plaza district includes concrete blocks, tile fragments, wood, glass, plastic bottles, metal cans, paper and cardboard, steel and aluminum scraps and food waste. During the construction phase, a Waste Management Plan developed by the construction contractor of District Plaza is being implemented. During operation, the waste strategy for TSCY includes minimizing waste generation per capita, segregating waste at source, reuse and recycling to minimize waste sent to landfills, as well as generating electricity from organic waste at a central Biogas Plant. The Biogas Plant will be a shared facility for TSCY and will be equipped to handle up to 100T of organic, green, and food waste per day. SDIC will develop a Waste Management and Monitoring Plan for Plaza District with a focus on minimizing waste, ensuring regulatory compliance, protecting health and environment, and promoting sustainability. This plan will be part of the operational management plans (ESAP#4) and will align with local regulations, IFC Performance Standards and WBG EHS Guidelines. The safe disposal of sludge from the Biogas Plant will be included in the Waste Management and Monitoring Plan.
PS 4 – Community Health, Safety, and Security
Community Health and Safety: The Yiti village consists of several clusters located about 2 to 7 km from TSCY. The estimated population of the nearby communities is some 2,700 residents. Construction related impacts and disturbances for these local communities are minimized by implementation of the construction management plans developed by the construction contractor, including for waste management, spillage control, noise monitoring and control, and air pollution control. The Project Management Consultant (PMC) hired by SDIC monitors these measures to ensure contractor compliance.
Traffic and Transport Management: The construction contractor for Plaza District has a HSE Management Plan which includes comprehensive information on traffic and transport. It addresses road safety, journey management, vehicle movement, driver competence, night driving, emergency response in case of road accidents, and the use of signage and barriers. These measures are designed to ensure the safety of personnel, the public, and the environment. As part of its operational management plan (ESAP#4), the Company will develop a Traffic and Transport Management Plan, aligned with IFC Performance Standard 4 and WBG EHS Guidelines. The plan will focus on the adoption of safety measures for both workers and road users, regular vehicle maintenance, driver training, as well as minimizing risks and impacts to community health and safety.
Security Management: For the construction phase, the construction contractor has a Security Management Plan focusing on protection of physical assets, protection of materials, safe work environment, environment protection, physical security at key locations, protection of information, financial security, incident reporting and investigation, as well as monitoring and audit. As per ESAP#9, the Company will develop a Security Management Plan for Plaza District aligned with IFC PS4 and the Voluntary Principles of Security & Human Rights. The plan will include a Code of Conduct for site security personnel, incident reporting, and investigation process. The Company will monitor the implementation of this management plan via regular audits. The Project's community grievance mechanism will be available for residents of Plaza District, members of the community, or Company employees, for grievance related to security personnel (including GBVH).
Life and Fire Safety: For the construction phase, the construction contractor has developed an EPRP. The document establishes a structured approach to fire safety, emphasizing prevention, rapid detection, clear evacuation procedures, trained response teams, regular drills, and continuous improvement to protect life, assets, and the environment in the event of a fire. The HSE Management Plan prepared by the construction contractor includes preventative and control measures for fires, including but not restricted to good housekeeping and storage; proper electrical cabling and earthing; regular inspection of electrical installations; storage of flammable goods and gas cylinders; maintenance of kitchen facilities etc. SDIC’s HSE Management Plan requires a proactive, systematic approach to fire safety, including planning, equipment, training, drills, and strict enforcement. Fire safety is integrated into emergency preparedness, site setup, and daily operations, with a focus on prevention, rapid response, and continuous improvement.
The design of the Plaza District apartments includes stringent fire prevention and response specifications in line with Omani laws, which in turn are based on the US National Fire Protection Association (NFPA). As part of the operational management plans (ESAP#4), the Company will prepare an Emergency and Preparedness Response Plan for Plaza district including for Life and Fire Safety (LFS). This Plan, together with a verification of conformity of the structures with the fire safety design will be prepared by a certified LFS specialist and will be a pre-requirement to obtain the occupancy permit from the municipal authorities.
PS 6 – Biodiversity Conservation and Sustainable Management of Living Natural Resources
The Project is situated in the Arabian-Persian Gulf coastal plain desert ecoregion and xeric shrublands biome. The coastal parts of the biome are characterized by the inter-tidal mudflats and islands that provide important breeding and resting habitat for migratory birds. The Project site is in converted land, where the natural coastal and inland wetland habitats, and ecosystem functions were altered some decades ago. Prior to conversion, the wider area, including marine neritic, coastal, supratidal and inland desert habitats, had been designated as Bandar Jussah Key Biodiversity Area (KBA) for migratory bird species. The Project is located in Modified Habitat within the boundaries of the KBA.
Project activities related to the construction and operations of the Plaza District will be confined to the already converted area, where there is no overlap with priority biodiversity values. Impacts on biodiversity values associated with the KBA are therefore not anticipated. The proposed water desalination plant will be located within TSCY and will generate a saline brine that will be discharged into the wadis that were formed after the land conversion had taken place. The discharged brine will flow as concentrated plume into the marine habitat. Priority biodiversity values that are potentially associated with the wadis and marine habitat include threatened cartilaginous fish species including sharks and rays, sea turtles, and marine mammals. IFC’s Natural Habitat No Net Loss (NNL) requirements will apply to priority biodiversity values that are identified to overlap with the Project.
As outlined under ESAP#2, E&S studies will be carried out for the desalination plant to evaluate the potential risks and impacts resulting from construction and operation of the desalination plant. As per ESAP#10, TSCY will develop and implement a Biodiversity Management Plan (BMP) to set forth all relevant measures to avoid and minimize impacts on marine Natural Habitat and priority biodiversity values including those that also occur in wadis. The BMP will be aligned with the Project’s ESMS per ESAP#3, including procedures for dredging and brine discharge management. TSCY will appoint specialized experts who will be responsible for implementation and reporting of mitigation measures.
In line with PS6, the TSCY will engage and consult with relevant stakeholders (e.g. Environment Society of Oman, Ornithological Society of the Middle East, The Caucasus and Central Asia (OSME), etc.) to identify opportunities to support and implement additional conservation within the Bandar Jussah KBA (ESAP#11).
